Overview
Establishing an in-house legal department doesn't mean completely dispensing with outside counsel. It needs a balance between what the internal department handles day-to-day and what remains within outside counsel's scope for specialized matters.
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The lawyers help determine the appropriate organizational structure for the new department, from the number of staff needed to each position's authority within the department, based on the company's size and actual needs.
Regulatory Basis
Establishing an in-house legal department isn't subject to a mandatory regulatory requirement, but is an internal organizational decision depending on company size and complexity of its legal matters.
How We Help With Setup
The lawyers begin by assessing the company's current volume of legal work and future expectations, to determine whether establishing an internal department is economically justified now or later.
Who Needs This Service
A company that has grown to a size warranting consideration of establishing an in-house legal department instead of full reliance on outside counsel.
A company that has recently established a legal department that needs help structuring its internal policies and procedures.
Some companies establish an in-house legal department enthusiastically to cut costs, only to discover later that the in-house lawyer spends most of their time on simple recurring operational matters instead of the strategic work the department was actually created for, which calls for a clear redistribution between what's managed internally and what remains within a specialized outside counsel's scope.
Additional Considerations
A new team benefits from a dedicated training program under the legal training service to prepare them on the company's fundamentals.
For defining the new department's internal authority, this structuring connects with the corporate governance and compliance service.
Common Questions
When is the right timing for establishing an in-house legal department?
This depends on the company's recurring volume of legal work, and the lawyers help assess whether this volume justifies the cost economically.
Does establishing an internal department mean completely dispensing with outside counsel?
Not necessarily, the internal department often retains a relationship with outside counsel for specialized matters beyond its internal expertise.