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CS Professional · Drafting, Pleadings and Appearances · Art of Opinion Writing

Ravi, a practising company secretary, receives instructions from Kaveri Pharma Ltd. for an opinion on a related-party transaction. The facts supplied are silent on whether the counterparty holds shares in the company, which affects the analysis. What is the most appropriate step?

Ravi should seek clarification from the client on the missing fact, and if it cannot be obtained, expressly state the assumption on which the opinion rests. Silent assumptions mislead the reader, and outright refusal is not required when the gap can be handled transparently.

  1. AAssume the counterparty is not a related party and proceed
  2. BAssume the counterparty is a related party to be on the safe side and state nothing
  3. CSeek clarification from the client, and if it is not available, state the assumption expressly in the opinionCorrect
  4. DRefuse to give any opinion in all circumstances

Explanation

A material gap in facts should first be cleared with the client. If it cannot be, the opinion should record the assumption clearly so that the reader knows the basis and limits of the advice. Silent assumptions in either direction are poor practice, and refusal is unnecessary where clarification or a stated assumption is possible.

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