At the recently held BW Legal World General Counsel Awards 2024, Dhanendra Kumar, a veteran in global financial and regulatory sectors and the former Executive Director at the World Bank, took the stage as the Jury Chair. His insights into the evolving role of General Counsels (GCs) in corporate governance and their increasing influence in the corporate world highlighted the critical nature of their positions today.
Reflecting on his experience as the Jury Chair, Kumar described the experience as both enlightening and refreshing. “The calibre of the jury and the rigorous selection process were exceptional, offering a profound learning curve not just about the nominees but the pivotal role of GCs in today’s business environment,” he remarked.
Kumar, who has held significant positions, including the first chairperson of the Competition Commission of India (CCI), shared anecdotes from his extensive career to underscore the indispensable role of GCs. He recalled a particularly telling incident during his time at the World Bank, where the advice of a GC proved crucial in navigating a complex human resource issue that saved both the company’s reputation and an employee's career. “In my experience, whether it’s in international settings like the World Bank or corporate sectors in the U.S., successful companies often have one thing in common: wise General Counsels who often rise to become the second-in-command,” Kumar stated.
A Role In Transition
The scope of the GC’s role has expanded significantly over the years. Once limited to managing legal affairs, today’s GCs are deeply involved in compliance, risk management and corporate governance. They navigate through a maze of laws and regulations covering everything from environmental issues and ESG compliance to international trade and data privacy. “The array of challenges that GCs manage daily underscores their versatility and indispensability in ensuring that companies not only survive but thrive by staying on the right side of the law,” Kumar explained.
He also touched upon the evolving perception of GCs within the legal and corporate communities. “There is a growing recognition of the fact that GCs are not just part of the legal framework of a company but are pivotal in shaping its strategy and ethics. They are worthy of being considered as top-tier professionals in the legal practice,” he asserted. This shift is particularly evident in how GCs are increasingly involved in critical decision-making processes that have far-reaching implications for their companies.
A Time To Change
The discussion also veered into the realm of legal reforms, with Kumar advocating for greater recognition and rights for GCs within the legal ecosystem. He pointed out that in more mature markets like the United States, GCs often wield more influence and are sometimes more sought after than CEOs due to their comprehensive understanding of both the business and its regulatory environment.
Kumar concluded his address with a call to the legal community and corporate sectors to continue to elevate the role of GCs. His insights painted a picture of the modern GC as a linchpin in the strategic wheel of corporate operations and governance.
