Legal issues can become complex as the company grows with time. It’s difficult to manage them without proper skills and experience. As a result, large companies hire full-time legal counsel to handle their legal affairs.
However, it’s not possible for small businesses that cannot afford an in-house lawyer. They hire outside lawyers or legal firms who manage their legal matters. But there are some problems with traditional methods such as overbilling, lack of legal management, management team distraction, etc.
Fortunately, a different type of legal advisor has evolved over the years who work as an in-house general counsel. Douglas Healy is a famous and trusted general counsel who works for the long-term sustainability of businesses. Here you will understand why every business needs a general counsel.
Importance of General Counsel in Business
As there are many structural changes in the legal industry, it’s important for businesses to hire skilled and experienced general counsel for their company. They can help businesses in many ways apart from legal matters.
1) Specialized Legal Services
When you hire general counsel for your business, you can get substantive legal knowledge about different niches such as employment law, intellectual property law, securities law, tax laws, etc. Small businesses can hire general counsel to help in different business operations.
2) Personal Network
General counsel not just offers a particular legal service. They provide the broad aspects of your business and advise you on how to strategically plan for the future. They have a personal network of different types of legal advisors, and you can easily get access to every type of legal affairs.
3) Business Maintenance Plan
General counsel act as your company’s agent to maintain your corporate files and seal. They also offer corporate maintenance programs to meet the annual meeting, record keeping, and filing requirements.
4) Incorporate Social Responsibility
Nowadays, companies are working towards long-term sustainability by adopting corporate social responsibility. Incorporating social responsibility and sustainability does not happen overnight; it requires time. The general counsel can help you do it the right way and make your company more trustworthy and socially recognized.
5) Contract Drafting
A general counsel can help businesses in drafting contracts. Every business has some contracts with other businesses or organizations. The documentation of a contract is quite complex, which you may be unable to do on your own. A general counsel is familiar with such a process and can deal with drafting contracts and agreements.
6) Compliance Assessment
Another important thing is compliance assessment that ensures your company is meeting the legal requirements. So you may not be able to handle these things on your own as it requires a good understanding of laws and experience in this field.
7) Employment Laws
Next, you need to know about the employment laws which a general counsel can help you to understand effectively. You need to comply with the regulations of employment law. Moreover, you will also need a legal advisor during any dispute; for instance, if an employee tries to defame your company, you can take legal action against them.
8) Finance and Banking
Although you need an accountant to deal with your finance, you may need a general counsel for tax laws, any legal issues related to finance, and more.
Many business owners do not consider it necessary unless any dispute has arrived. They reach out to lawyers after a legal issue. Although they may build a quick relationship with the general counsel, it’s not effective. It can put unnecessary stress on the business owner to quickly explain the legal issue.
The Final Thoughts
In case you have built a good relationship with a general counsel, that lawyer can proactively deal with any emerging issues. Most of the business owners want that a general counsel could help them when they have a particular question during an ongoing legal affair. Hopefully, the above information has helped you to understand the importance of general counsel in businesses. Please feel free to share your feedback on this post in the comment section.