NDA For Due Diligence for South Africa

NDA For Due Diligence Template for South Africa

This Non-Disclosure Agreement (NDA) is specifically designed for due diligence processes in South Africa, incorporating requirements from key legislation including the Protection of Personal Information Act (POPIA), Companies Act, and Competition Act. The agreement provides comprehensive protection for confidential information exchanged during due diligence investigations, with specific provisions for data protection, competition law compliance, and electronic information sharing. It includes robust security measures and clear procedures for handling sensitive business information, making it suitable for complex corporate transactions in the South African business environment.

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What is a NDA For Due Diligence?

This NDA for Due Diligence is essential for protecting confidential information during corporate investigations and transactions in South Africa. It should be used whenever parties need to exchange sensitive business information for the purpose of evaluating potential business transactions, mergers, acquisitions, or investments. The document incorporates requirements from South African legislation, including POPIA, the Companies Act, and Competition Act, ensuring comprehensive protection for all parties involved. It is particularly important given South Africa's strict data protection requirements and the need to manage competitively sensitive information appropriately. The agreement includes provisions for both physical and electronic information sharing, making it suitable for modern due diligence processes that often utilize virtual data rooms.

What sections should be included in a NDA For Due Diligence?

1. Parties: Identification of the disclosing party, receiving party, and their authorized representatives

2. Background: Context of the due diligence process and purpose of the agreement

3. Definitions: Key terms including Confidential Information, Due Diligence Exercise, Permitted Purpose, Representatives

4. Scope of Confidential Information: Detailed description of what constitutes confidential information in the context of the due diligence

5. Permitted Use and Disclosure: Specific purposes for which confidential information may be used and conditions for disclosure to authorized representatives

6. Security Measures: Required procedures and systems for protecting confidential information

7. Return or Destruction of Information: Obligations regarding the handling of confidential information after the due diligence process

8. Duration of Obligations: Term of the agreement and survival of confidentiality obligations

9. Breach and Remedies: Consequences of breach and available remedies under South African law

10. General Provisions: Standard clauses including governing law, jurisdiction, and entire agreement

What sections are optional to include in a NDA For Due Diligence?

1. Data Protection Compliance: Specific provisions addressing POPIA compliance, necessary when personal information is involved

2. Competition Law Compliance: Required when parties are competitors or in the same industry to ensure compliance with Competition Act

3. Digital Information Handling: Specific provisions for electronic data rooms and digital information sharing

4. Third Party Information: Provisions dealing with information owned by or relating to third parties

5. Insider Trading Prevention: Required when listed companies are involved or when dealing with price-sensitive information

6. Clean Team Arrangements: Used when highly sensitive competitive information needs to be restricted to specific individuals

What schedules should be included in a NDA For Due Diligence?

1. Schedule 1: Authorized Representatives: List of individuals authorized to access confidential information

2. Schedule 2: Security Protocols: Detailed security measures and procedures for handling confidential information

3. Schedule 3: Categories of Confidential Information: Specific types and categories of confidential information covered

4. Schedule 4: Data Room Rules: Procedures and rules for accessing and using electronic or physical data rooms

5. Appendix A: Confidentiality Undertaking: Form of confidentiality undertaking for representatives and advisors

6. Appendix B: Information Return/Destruction Certificate: Template certificate confirming return or destruction of confidential information

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

South Africa

Publisher

Genie AI

Cost

Free to use
Relevant legal definitions
Clauses
Relevant Industries

Financial Services

Mining

Manufacturing

Technology

Real Estate

Healthcare

Retail

Energy

Telecommunications

Professional Services

Agriculture

Construction

Transportation

Education

Hospitality

Relevant Teams

Legal

Finance

Mergers & Acquisitions

Corporate Development

Compliance

Risk Management

Information Security

Business Development

Executive Leadership

Project Management

Data Protection

Corporate Secretariat

Treasury

Information Technology

Relevant Roles

Chief Executive Officer

Chief Financial Officer

Chief Legal Officer

General Counsel

Corporate Development Director

Mergers & Acquisitions Manager

Due Diligence Manager

Investment Banker

Legal Counsel

Financial Director

Compliance Officer

Data Protection Officer

Risk Manager

Business Development Director

Project Manager

Information Security Manager

Industries
Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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