Quick Take: General Counsel On Corporate Governance And Compliance Programs

The legal profession in India has undergone immense change and reform. The rise of the General Counsel has led to a realisation that lawyers are not only supposed to firefight in Court but they are also essential in risk assessment and risk mitigation.

The assimilation of lawyers into corporate operations has made company functionality more streamlined and smooth. The dilemma between the pressure of growth and the compulsion to obviate risks is a tightrope to walk for a General Counsel.

Shalinee Kulshrestha, General Counsel at Dentsu International pointed out that General Counsel are being seen as business enablers. She further emphasised that promoter driven companies have the tendency to overlook the need to understand the importance of legal compliances while focussing on growth and profits.

"This exposes them to liabilities and risks, which sometimes is disproportionate to the Business value they bring. Gone are the days when you needed a lawyer when you were party to litigation. In today’s time, the legal professional plays as important a role in shaping the Business as any other Business professional. The legal teams help in conducting the risk assessment and mitigation that helps Businesses in considering their overall short term and long-term strategy," says Kulshrestha.

Due to the gradual increase in the legal scrutiny and regulations, companies have begun to pay more attention to compliances. Even promoter driven companies are compelled to be more cognizant of the fact that legal compliances are a necessity which keep the businesses immune from wading into troubled waters.

Suchita Saigal, General Counsel, Cleantech Solar shares that as the Chief Compliance Officer, she conducts sessions on the Cleantech Solar Business Integrity Program for the employees, and these sessions serve to address any doubts and questions in an open forum. She also mentioned that an Ethics Helpline has been established where violations of the Cleantech Solar Business Integrity Program can be reported anonymously. She believes that such measures are instrumental in building confidence in the business and are highly valued by both internal stakeholders and clients. 

"Such measures help build confidence in the business and are valued by internal stakeholders and clients. Over time we would need to assess the implementation of such measures to ensure that they continue to remain meaningful and serve the purpose for which they are introduced," says Saigal said.

The introduction of such transparent measures in terms of regulatory changes and consequent corporate governance issues is also imperative. The involvement of the General Counsel community in the decision making of companies and boards is increasing by the day and the time- honoured experience of lawyers is being put to exceptional use in corporate governance.