The Study On Chinese Corporate Counsel System

In recent decades, as China’s economy and society develop rapidly,the modern rule of law is also increasingly sound. At the same time,modern enterprises are facing more and more new and different types ofpotential legal risks, the consequences of legal become destructive, andit makes matters worse. The traditional mode that corporate employlawyers as legal advisers, who act as "fireman ", is no longer the easiest,economical and effective way to control legal risks. In fact, the majorityof modern enterprises, especially small and medium enterprises, areexcessive to pursue economic benefits in the process ofself-development, while ignoring the significant changes of marketcircumstance. For most of them, the current situation of legal risks’prevention and control can’t meet their needs already. Therefore,modern enterprises urgently need to find a new way to maximize theirbenefits, then the corporate counsel system come into being. At the beginning, this paper focuses on the seriousness of legal risksfaced by modern enterprises, then suggests that the best solution toresolve the situation is to establish the corporate counsel system;followed by introducing the foreign and domestic corporate counselsystems, including the development process, current situation andoperation mode and so on, this paper extracts the contents that could bereferenced by china. According to the status quo, this paper points outthe drawbacks of Chinese corporate counsel system, and propose anidea of establishing a mechanism which concentrate on the preventionand control of legal risks in enterprises; At last, this paper tries toindicate that legal department is not just a section adds up costs, butalso able to create direct economic benefits, therefore, legal departmentshould be regarded as an important strategic asset of modernenterprises.