The General Counsel of LG Electronics spoke at the InsideCounsel Super Conference on May 25 th. The subsidiary he serves racks up $6 billion in sales yet has only five lawyers. He said there was no headquarters legal group so they are actually stand alone. It was his outline of how they handle an enormous volume of contracts that motivated me to write.
His group turned out about 1,200 contracts in the past year and he commented on how they did that. One, they make sure all contracts are signed. Two, they have the legal department review all contracts signed by the company. Three, they’ve created standard terms and conditions for the purchase orders used by the company. Four, they have clearly defined the boundary of what transactions require a contract and what may be done by purchase order. The law department decides whether to deal requires a contract or purchase order. Five, the legal department keeps a database of signed contracts and tracks their status. They also use this database to report on workflow that they’ve accomplished. Six, they store and retrieve both physically and electronically all contracts.