A recent study, financed by the Association of Corporate Counsel, has found a correlation between the roles of Chief Legal Officer (CLO) and Corporate Secretary (CS), within larger corporations, and the likelihood of such corporations facing legal issues. The synergistic combination of the CLO and CS roles appears to effectively reduce the potential for companies to encounter legal problems.
While the specific roles of a CLO and CS can vary greatly between organisations, traditionally a CLO is responsible for all legal aspects of business strategy, including legal department management, compliance, and corporate governance issues, and a CS mainly ensures the seamless administrative functioning of a corporation. The research suggests that consolidation of these roles can add an additional layer of governance and protection.
Conductors of the study have urged caution to regulators and commentators who advise separating the roles of CLO and CS. The message from their findings is clear: there are potential systemic benefits in having a unified CLO and CS role within an organisation. The specific nature of such benefits, however, remains to be researched further.
To learn more details of the study, you may refer to the original research here.
While this revelation about the CLO and CS dual roles and their potential to deter legal complications seems promising, it is crucial to remember the research is a step towards building a larger understanding. However, it ignites a fascinating conversation around corporate structures and offers a fresh perspective on what well-rounded leadership in the corporate sector could look like.