In an increasingly complex and regulated professional environment, corporate crises are inevitable. The role of the general counsel then becomes crucial in navigating these delicate periods. At WAYDEN, we provide experts in Interim management to support businesses during these critical times. This article explores the 6 key roles of the general counsel in crisis management.
What is a General Counsel?
The General Counsel, also known as the Chief Legal Officer (CLO), is responsible for overseeing all legal affairs of the company. He ensures compliance with applicable laws and regulations, manages legal risks, and advises management on the legal implications of strategic decisions.
In times of crisis, his role becomes even more critical, as he has to navigate murky legal waters to protect the company.
The 6 roles of the general counsel in crisis management
1. Legal risk assessment
The general counsel begins by assessing the potential risks that the crisis may generate. This legal audit includes litigation, regulatory fines for non-compliance, and impacts on the company’s reputation:
- Identification of legal risks specific to the crisis.
- Analysis of the legal implications for the company.
- Development of strategies to minimize the identified risks.
2. Strategic advice to management
The General Counsel plays a strategic advisory role to management, providing informed advice to assist in timely and informed decision-making:
- Participation in crisis meetings with management.
- Presentation of legal options and their consequences.
- Recommendations on actions to be taken to remain in legal compliance.
→ In conjunction with top management, the General Counsel (CLO) also has a role to play in maintaining corporate governance and relations with shareholders.
3. Management of legal communications
Communication is key in times of crisis. The General Counsel ensures that all external and internal communications comply with legal requirements:
- Drafting and editing of press releases and public statements.
- Training of company spokespersons in the legal aspects of communications.
- Overseeing responses to requests from regulators and stakeholders.
4. Internal conflicts and employee disputes
When a crisis involves internal investigations, the General Counsel coordinates these investigations to ensure that they are conducted appropriately and legally:
- Development of internal investigation protocols.
- Supervision of investigation teams.
- Ensuring compliance with applicable laws and regulations.
→ Legal expertise in French labor law is key to ensuring the resolution of internal employee-related crises. Dismissal, harassment, discrimination or violation of employees’ rights are managed by the company’s legal manager in direct contact with the CSE (Social and Economic Committee).
5. Management of commercial and contractual disputes
The crisis can often lead to disputes. The General Counsel is responsible for managing these disputes to protect the interests of the company:
- Assessment of complaints and potential remedies.
- Negotiation with the opposing parties to find amicable solutions.
- Representation of the company before the courts if necessary.
→Commercial and contractual disputes are frequent in companies, especially if contracts have been concluded internationally, with non-competition clauses.
Expertise in intellectual property law is also key to maintaining the competitive advantages of start-ups, in particular, for the management of industrial espionage and the sanctioning/prevention of unfair competition practices.
6. Regulatory Compliance
In times of crisis, maintaining compliance with the current standards is crucial. The General Counsel ensures that all actions of the company comply with legal requirements:
- Internal Compliance Audit
- Monitoring of relevant regulatory developments.
- Establishment of internal procedures to ensure compliance.
- Continuous training of employees on the new regulations.
→ GDPR compliance, HSE standards, ESG and more broadly QMS : our experienced managers support you in your legal projects.
Why call on WAYDEN?
Calling on WAYDEN means ensuring that you have experts at your side in interim management capable of managing legal crises in a professional and efficient manner. Our interim legal directors bring in-depth expertise, an external perspective and the ability to act quickly to protect and stabilize the company.
Contact us to find out how WAYDEN can help you with your problems.
