Lalit Bhasin Advocates For Greater Recognition & Reform For General Counsels

Over the past few decades, the role of the general counsels (GCs) in India, has evolved dramatically. Initially serving as intermediaries between corporate bodies and external lawyers, GCs now manage comprehensive legal departments that provide strategic guidance directly to corporations’ boards of directors and leadership teams. Yet, they lack statutory recognition in India.

Lalit Bhasin, President of the Society of Indian Law Firms, advocates for a transformation in this role and recognition for GCs, reiterating the pivotal role that GCs play not only within their corporations but also in shaping the economic and legal landscapes of the country.

In his keynote address at the BW Legal World General Counsel Conclave that took place in Delhi on May 11, Bhasin reflected on the historical challenges faced by GCs, particularly the lack of recognition from regulatory bodies such as the Bar Council of India.

He emphasised the critical influence of the legal profession on the development of the corporate sector and, by extension, the national economy. Yet, despite their integral role, GCs have often received what the veteran leader termed as “stepmotherly treatment” compared to their external counsel counterparts.

The Need For A Collective Voice

The core of Bhasin’s message was a call to unity among GCs. He stressed that a collective voice could command the attention and respect of not only other professional bodies but also crucial entities like the Bar Council. “A right is never given, it is taken,” he said, urging GCs to take proactive steps towards securing the recognition and authority they deserve.

Dr. Bhasin highlighted the modern GC’s broadened responsibilities, including strategic influence, compliance, legal technology adoption, and crisis management. These responsibilities place GCs at the heart of corporate governance and risk management, often making their role more significant than that of even the directors on the board.

Addressing the regulatory gaps, Bhasin advocated for the amendment of existing laws and Bar Council regulations to acknowledge the evolved role of GCs. He pointed out that while informal recognition of top general counsels exists, statutory recognition remains necessary to provide the clarity, accountability and legal privileges that GCs require to perform their roles effectively.

Need For Reforms

Lalit Bhasin also outlined specific reforms needed to elevate the status and efficacy of GCs within the corporate and legal frameworks. These include statutory recognition of GCs as legal advisors, direct reporting lines to CEOs or Managing Directors, extension of attorney-client privilege, and involvement in governmental policy-making and legislation drafting. He also suggested that GCs should be allowed to represent their companies in legal proceedings and be eligible for roles such as mediators or arbitrators under relevant laws.

The need for these reforms stems from the global recognition of the importance of GCs in promoting corporate governance and ensuring compliance with laws and regulations. Countries around the world have begun to recognise the value of integrating GCs more deeply into the legal and corporate governance frameworks, acknowledging their role in fostering economic growth and reducing corruption.

During his address, Bhasin also mentioned a high-profile meeting with the Arbitration Bar of India, where these issues would be raised further. He called on the general counsel community to adopt these proposals as their official resolution and to actively participate in lobbying for these changes with the Bar Council of India and the Ministry of Law and Justice.

His address was not just a call for change but a detailed roadmap for the future of general counsel in India. By outlining specific, actionable reforms and rallying GCs to unite for their rights, he set the stage for a significant transformation in the role that these crucial legal professionals play in the corporate and economic fabric of the nation.