I am fascinated by the article written by Susan Friedman of Marsh in the New York Law Journal and discussed further at The Wired GC about the new role of the General Counsel as “gatekeeper” with an increased role in corporate governance and in managing any corporate crisis and how this change can increase exposure and impact professional liability insurance policies. 

The focus of the article is on the role of an existing General Counsel, but what about the many companies that do not have a full-time in-house General Counsel – who is performing the role of the gatekeeper for these companies and overseeing these legal areas including, but not limited to SOX compliance, stock option procedures and document storage and retention? 

It is very common that small to mid-size companies do not have their own in-house General Counsel and it is the CEO or CFO that manages these legal areas along with the more mundane contracts and employment issues that arise on a regular basis.  Perhaps ten years ago many of these companies could get by without an in-house General Counsel but why would any company CEO or CFO in these times want to take on the increased exposure and liability of managing the companies legal function when they can now have access to a cost effective, part-time in-house General Counsel to take on this responsibility and potential liability?