Within the corporate governance arena the legal team have a number of key responsibilities which many organisations may not adequately understand. The Legal team, internal or external counsel, are not there just to write contracts and help you if there is a case pending. LinkedIn Article
The saying “prevention if better than a cure” should be applied to the relationship between business leaders and the legal team without reservation. Many issues can be resolved prior to anyone realising there is a problem if the legal team are involved in advising on decisions at an early stage.
As with many professions which are outsourced the legal team are reactive rather than proactive, I don’t mean this in a negative way just that they respond to information and questions that are presented rather than fishing around your business for areas they can advise you on e.g. your legal team will happily review and advise you on a the contract template you wish to use and building in clauses to protect you and the other party in the event of an issue rather than taking an issue on a poorly executed contract and be told “oh this contract allows for this so not much I can do”.
The legal team responsibilities in relation to corporate governance include the following;
- Review and advise the organisation on all legislative and regulatory requirements for operating in the regions and countries your business operates.
- Review and advice on contracts, agreement, regulatory reports and other documents required within the business to ensure they are legally sound.
- Review and advise the organisation on the legal structure of the organisation including shareholder holding and exit clauses for shareholders or investors.
- Advise the organisation on compliance requirements to different regulators to ensure the business remains compliant at all times.
- Review any document e.g. corporate governance manual to ensure it is aligned with local companies law and the articles of association
- If retained to do so to provide ongoing advise to the organisation in relation to changing regulations or legislation to ensure the organisation has ample time to identify risks to the business.
In short the legal team are there to assist with information, assessment and advise to ensure the organisation is always compliant with the requirements in the countries where the organisation operates. Read More