5 reasons why your business needs in- house counsel

By Abenaa AGYEKUM

Legal disputes often make headlines, sparking public interest in court cases. Naturally, when people want to understand a legal issue, they reach out to the closest lawyer they know.

I have noted that, after providing them with the ‘headnotes,’ they often bring up their own disputes and ask for representation in the matter… and are shocked to discover that—while I’m a qualified Barrister and Solicitor of the Supreme Court of Ghana—I am a corporate practitioner and do not go to court.

Many companies hold this misconception too, assuming that a lawyer, simply because they’re a lawyer, is an appropriate fit for all legal tasks. Consequently, many companies rely solely on external lawyers for all matters even for day-to-day legal concerns.

They dismiss the need for a dedicated in-house counsel, usually citing budgetary concerns and being unsure about where to place them within the structure of the company. Or worse, they simply cruise on and hope for the best.

Historically, litigation lawyers (the court-going ones) have garnered significant prestige. This is largely due to their visible role in high-profile, often publicized, court cases. You just pictured the firm wig, crisp white shirt against the black robes, didn’t you?

All lawyers are trained in litigation, as courtroom advocacy was considered the pinnacle of legal practice. As a result, these lawyers are seen as the “elites” of the profession, with their successes in court becoming widely recognized.

However, as corporations and the business world evolved, legal complexities grew. So did the need for specialized legal support within organizations. Today, the role of in-house counsel has become integral to a company’s success.

In-house counsel offer (i) proactive, ongoing legal advice that helps businesses avoid disputes before they escalate and (ii) invaluable support in areas such as compliance, risk management, and strategic planning. But we don’t seem to have great PR.

A great analogy that clarifies the difference between the roles of in-house counsel and external lawyers is the relationship between an anaesthetist and a surgeon. The anaesthetist

prepares the patient so that the surgeon can operate, and both remain involved in the patient’s care throughout the procedure. Similarly, in-house counsel work within the organization, providing ongoing legal support and preparing the company for the complex legal challenges. External counsel—the ‘surgeons’—are called in to handle when specialized interventions are needed. Business transactions without counsel are not ideal, like surgery without anaesthesia.

This distinction is critical for businesses to understand, especially Small and Medium Enterprises (SMEs) that might overlook the unique and complementary functions that in-

house counsel offer. Let’s explore why your business needs an in-house lawyer and how they can play a crucial role in your company’s long-term success.

1.  A trusted advisor, embedded in the business

In-house counsel serves as more than just a legal expert; they are integral to your company’s decision-making process. By working within the organization, they gain a deep understanding of the business, its culture, and its objectives. This allows them to provide

tailored legal advice that aligns closely with the company’s strategic goals, offering solutions that are both legally sound and practically feasible. Whether you’re considering new partnerships, expanding operations, or navigating regulatory hurdles, in-house counsel is there to guide you every step of the way and help you avoid pitfalls.

2.  Cost efficiency: The advantage of having on-site legal expertise

For SMEs especially, legal expenses can quickly add up. Engaging external counsel for routine matters can become cost-prohibitive. Retaining in-house counsel offers a cost- effective solution for ongoing legal work, such as contract reviews, compliance issues, and employee matters.

By handling these tasks internally, your business can keep legal costs predictable, reserving external counsel for serious disputes or for complex issues that would otherwise fully consume in-house counsel’s time or niche matters that require specialized external expertise.

3.  Quick response to legal issues

In the fast-paced business world, timing is crucial. Legal issues can arise unexpectedly, and the ability to address them promptly is key to preventing escalation. In-house counsel, being readily available and immersed in your business operations, can offer immediate advice and solutions when problems arise.

Whether it’s a sudden compliance concern, a contractual dispute, or an intellectual property issue, in-house counsel is poised to respond quickly and effectively, reducing the risk of legal pitfalls.

4.  Risk management and strategic planning

In-house counsel are not just reactive; they are proactive in managing risks and helping shape your business’s future. From regulatory compliance to intellectual property protection and employment law, they can anticipate potential legal issues and devise strategies to mitigate those risks before they become significant problems.

Moreover, in-house counsel play a key role in strategic planning, ensuring that the business’s legal framework aligns with its long- term objectives, whether it’s securing new partnerships, entering new markets, or launching innovative products.

5.  Collaboration with external counsel when necessary

While in-house counsel are well-versed in handling day-to-day legal matters, there are times when external counsel’s specialized expertise may be needed. For example, in arbitration, mergers and acquisitions, or for cross-border transactions, external counsel with niche expertise can become crucial. However, the strength of having both in-house and external counsel is in their collaboration.

In-house counsel can advise, based on budget, company culture, and workload, when matters should be outsourced and provide options to the business regarding who to trust. In-house counsel then works closely with external lawyers to ensure that legal strategies are aligned with the company’s goals and operational realities, resulting in more effective outcomes.

Conclusion

The misconception that hiring in-house counsel is unnecessary and/or duplicates the role of external lawyers overlooks the distinct and complementary functions each offers. In-house lawyers are integral to your business’s daily operations, offering tailored advice, managing risks, and providing cost-effective legal solutions.

External lawyers, on the other hand, bring specialized expertise to niche issues. By leveraging both, your business can maintain a robust legal framework, navigate challenges with agility, and ultimately achieve long-term success.

Abenaa is a Strategic In-house council, navigating extractive industry strategic challenges ethically and efficiently in Africa currently based in Port Loko, Sierra Leone.

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