THE CASE FOR COUNSEL TO OUTSIDE DIRECTORS

NUMEROUS ISSUES VIE FOR THE OUTSIDE DIRECTOR'S ATTENTION. THESE ISSUES MAY CONTAIN LEGAL IMPLICATIONS UNKNOWN TO ALL BUT THE LAWYER, AND THE PRICE AN OUTSIDE DIRECTOR CAN PAY FOR HIS IGNORANCE IS EXTREMELY HIGH. IT IS ARGUED THAT AN ORGANIZATION SHOULD RETAIN A LAWYER TO DEAL WITH BOTH OBVIOUS...

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Bibliographic Details
Published in:Harvard business review 1976-07, Vol.54 (4), p.125-132
Main Author: Estes, Robert M
Format: Magazinearticle
Language:English
Subjects:
Counsel
Directors
JUDICIARY
LAWYERS
LEGISLATIVE AND EXECUTIVE
MANAGERS AND MANAGEMENT
Selection
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Summary:NUMEROUS ISSUES VIE FOR THE OUTSIDE DIRECTOR'S ATTENTION. THESE ISSUES MAY CONTAIN LEGAL IMPLICATIONS UNKNOWN TO ALL BUT THE LAWYER, AND THE PRICE AN OUTSIDE DIRECTOR CAN PAY FOR HIS IGNORANCE IS EXTREMELY HIGH. IT IS ARGUED THAT AN ORGANIZATION SHOULD RETAIN A LAWYER TO DEAL WITH BOTH OBVIOUS AND BURIED LEGAL MATTERS THAT AFFECT ITS OUTSIDE DIRECTORS. THERE IS ONLY ONE ESSENTIAL IN THE SELECTION OF COUNSEL TO ASSIST OUTSIDE DIRECTORS - GET A LAWYER WHO UNDERSTANDS THE PROBLEM AND WHOSE EXPERIENCE, EITHER INSIDE OR OUTSIDE THE CORPORATION, BEARS A DIRECT RELATIONSHIP ON ITS RESOLUTION. THE OUTSIDE DIRECTOR SHOULD HAVE AN UNDERSTANDING OF THE ROLE OF THE CORPORATE COUNSEL AND SHOULD NOT HESITATE TO HAVE DIRECT ACCESS TO THAT SOURCE OF ADVICE AND SUPPORT IN RELATION TO THE INSTITUTIONAL HEALTH OF THE ENTITY. ONLY IN THE RARE SITUATION WHERE RESORT TO CORPORATE COUNSEL FAILS SHOULD THERE BE A NEED TO TURN TO OUTSIDE COUNSEL.
ISSN:0017-8012