There are plenty of reasons a company decides to bring on a general counsel team. Especially for large corporations, these professionals seek to reduce and control their Risk Management Liability. What’s more, having an in-house general counsel has plenty of benefits. Here are some common reasons that companies founded a legal department.
Desire for Growth
The strategic planning for growth is backed by the general counsel. This helps to ensure all of the milestones are achieved without adding any unforeseen risk. Furthermore, general counsels can help to direct the company in the right direction of new partnerships and acquisitions, as well.
New Regulations
Inside Counsel explains another major reason for hiring a first GC: concerns over regulations. Heavily regulated industries, such as finance and health, tend to hire a general counsel sooner than organizations in other industries. Having general counsel navigate the new laws and regulations is paramount to a business’ success. Without lawful expertise, businesses are left exposed.
Restructuring the Organization
When a company is restructured from the ground up, often times they need general counsel. Further, when comparing how much money is spent on outside counsel versus how much money an in-house person would cost, many business owners find that it pays for itself, says Jeremy Lagomarsino, Berlin Packaging’s Executive Vice President of Business Development and Strategy.
Further, if a company decides to create a foundation to manage grants and donations for their cause, such as a nonprofit, then general counsel is a necessity.
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