Global expansion: lawyers must combine business skills with legal abilities, says report


Expansion into emerging markets represents an opportunity for general counsel to take centre stage and enhance their value to their company's board of directors, according to a report by City firm Baker & McKenzie released last week.


The survey of 51 board members or senior management at FTSE-500 companies revealed that the legal and commercial requirements involved in entering emerging markets presented a chance for general counsel to raise their profile.


Knowledge of how to protect intellectual property will be a key requirement for general counsel, the report showed, with many organisations fearful of giving away intellectual property rights to joint venture partners or finding their brand exploited through counterfeiting.


Board members expect heads of legal to establish good links with local legal advisers and to vet the quality of local advice, ensuring


reliability and consistency of information. They are also recommended to investigate potential business partners rigorously, including not only their operations but also their business reputation, financial position and informal connections within the country.


General counsel are expected to provide a watchman role and familiarise themselves with local regulation and compliance laws, as well as how these work in practice, according to the survey. They should also formulate an exit strategy for the company.



Respondents said they wanted general counsel to display a combination of business awareness and legal abilities. As the emerging market environment involves a high level of risk, the ability to take an overview of risks - without being so risk averse as to stifle opportunity - is seen as essential.


Baker & McKenzie managing partner Gary Senior said: 'General counsel already face challenges in supporting the major strategic and day-to-day requirements of their organisations. With the growing importance of the BRIC (Brazil, Russia, India and China) and other emerging economies, and the opportunities and risks which doing business with them implies, demands on many general counsel are set to extend in both geography and scale.'


Of the 51 companies surveyed, just under one-fifth had a general counsel at board level, while 13% had a general counsel at senior management level. Only 7% did not have in-house counsel.