There are many types of advisors who work in a company, one of which is Legal Advisor. Legal Advisors are specifically tasked with providing opinions and considerations regarding legal protection and legal provisions, protecting the company’s interests in conducting trade transactions domestically and internationally, avoiding unexpected losses, reviewing and drafting agreement contracts made between the company and other involved parties aimed to minimize unexpected disputes in the future.
To obtain legal protection for its interests, companies must comply with the provisions set by the government. In short, Legal Advisor is a solution needed by companies to solve legal problems and legal obligations that exist in the company.
A. Legal Advisor’s Role in the Company
Internally, Legal Advisor in the company has the role of giving the first warning about legal issues that may be faced by the company so that they can be resolved quickly. Externally, the Legal Advisor is also a liaison between the company and parties outside the company such as government agencies, or other third parties who collaborate with the company. Legal Advisor is responsible for preparing and supervising the implementation of the agreement between the parties.
A Legal Advisor has several important roles in a company. A Legal Advisor has at least 3 (three) roles:
An Advocate for the Company
An advocate plays a part on representing the company when trouble arises in court, his duty comprises of:
- Representing the company when dispute arises in Court
An advocate of the Company is liable for the actions on representing the interest of the company when the company is caught between a dispute in court, be it a civil dispute or a criminal case. An advocate is tasked with collecting evidence, compiling legal arguments, and providing information if needed. - Representing the company when dispute arises outside of Court
An advocate of the company are also responsible for acting on behalf of the company’s interests if the company has a dispute with a third party that is resolved out of court, such as through mediation, negotiation and other alternative dispute resolutions.
- Representing the company when dispute arises in Court
Enabler of the Company
A company enabler acts to prepare and manage licenses, legality, and manage other documents both internal and external documents of the Company, his tasks comprises of:
- Managing documents and legalities of the Company
Legal Advisor plays an important role of ensuring the legal compliance of the company, especially in regards to business licenses. Without business licenses, every avtion done by the company will be deemed illegal in the eyes of the law. Other than that, the company will not be able to participate in other profitable activities, such as participating in a project or tenderization. A Legal Advisor is liable to manage the whole process of obtaining those business licenses and manage the storage of the documents so it can be accessed by the right stakeholders in the company. - Doing research
Advocates are also responsible for acting on behalf of the company’s interests if the company has a dispute with a third party that is resolved out of court, such as through mediation, negotiation and other alternative dispute resolutions.
- Managing documents and legalities of the Company
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Legal Consultant of the Company
A legal consultant of the company acts to give the right opinion or consideration regarding laws to the board of the company. His tasks comprises of the following:
- Giving legal opinion
Legal Advisor is responsible for providing direction to the board of directors regarding legal issues, potential risks, and what actions needs to be taken when legal problems arise. They also need to consider all possible risks before making any recommendations. Legal Advisors have an obligation to provide direct reports to the Director or Board of Directors, other than that, Legal Advisors must also coordinate with internal departments such as accounting, marketing, human resources and internal audit because all departments in the company will always be in touch with the laws related to the activities of each department
- Giving legal opinion
- Identifying risks
Ideally, any business legal issue is a risk that must be stopped before it occurs. Therefore, a Legal Advisor is needed in the company to analyze the company’s actions and decisions to identify risks that may arise due to legal issues. After the identification process is complete, the Legal Advisor is also required to provide advice so that the company can avoid the risks found
- Identifying risks
B. Qualification as Legal Advisor
As noted above, Legal Advisor is also expected to represent the company in court if the company is required by law to do so. Therefore, there are several qualifications that must be met by a Legal Advisor in order to fulfill his role and carry out his duties in the company:
- Have finished S1 – Ilmu Hukum (Bachelor of Law) education in Indonesia, this is suggested so that Legal Advisor has basics knowledge of the laws in Indonesia
- Have obtained the necessary certifications needed, for example, if the company needs a Legal Advisor to represent the company in a court, therefore, the Legal Advisor must have finished Advocate Special Professional Education (PKPA), Bar Examination (UPA) and sworn in as an Advocate
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In addition to having the qualifications as mentioned above, a Legal Advisor must also always understand the latest laws and regulations relating to company activities.
Legal Advisors are needed by companies to fulfill obligations that have been regulated by the government. Therefore, it is natural for a company to have a Legal Advisor position in it, but if the company does not have the ability to hire Legal Advisors as employees, then alternatively, the company can use the services of a legal consultant to fulfill its obligations.
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ET Consultant is a Business Consultant and Legal Consultant Expert that provides support for local and multinational clients to start and manage their business operations in Indonesia. ET Consultant specializes in Business Incorporation, Licensing & Legal, Accounting & Taxes, Immigration, and Advisory Services.
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