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Brazil Teams 2019

Cast Group

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Brazil Teams 2019

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Cast Group

Henrique Rabelo is the current general counsel for all companies that are part of the Cast Group, a Brazilian information technology company specialising in IT consulting, outsourcing and the integration...

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Can you briefly explain how the legal team is structured, highlighting key individuals and their role within the department?

Currently the structure is responsible for Legal and Contract Management. I am the Director, leading everyone. The biggest highlight I find interesting is the lawyer Arthur Moragas, who started here in the team at Junior level, and today, after four years, is a senior lawyer, with recognised growth and admiration throughout Cast group.

What are the most significant cases and/or transactions that your legal team has been involved with in the last two years?

The team is involved with all areas of the company, and also leads the legal issues of all matters, so there are several significant examples, such as: defence of the group on multimillion-dollar tax causes; leadership in audit process in a “mega public contract” culminating in the court’s perception of full regularity; strategic participation in negotiating contracts with strategic clients; and offering training and consulting on the new data protection law.

When we last spoke, you mentioned that your team has embedded within the company “senior legal advisors” who proactively impact the legal process within the company and manage risk. How has this impacted the business? What advice would you give another legal team implementing such a structure?

The involvement of the legal department in the company processes is essential for risk management. Confusing Brazilian law, especially tax and labour legislation, must be well known, analysed and considered in the decision making of the company’s board, or otherwise the company may be exposed to unnecessary risks.

An advice that I’d give is that the legal team should aim to create a legal culture within the company, so that the other sectors should understand that lawyers are not “auditors” or professionals to prevent new business of the company for fear of Brazilian legislation, but, in fact, are true partners that help in structuring the business, so that the company’s actions are always regular, but potentially focused on the positive outcome of the company and its business. This requires a good knowledge of the team not only of the legislation, but of the most modern practices of the market, the financial and accounting world, technical knowledge of the services and products offered, people management, among others.

How important have “soft skills” or personal attributes outside of technical legal skill been to the team’s success, and which “soft skills” do you feel are most important for an in-house lawyer to possess?

First of all, an in-house lawyer must be a good manager of conflicts and expectations. This requires knowledge, patience and skills of reasoning. Often, for instance, a sales board doesn’t recognise that a sale should be analysed from aspects other than price, but it should also fit within a good contract, and the board ends up seeking legal review of a contract in one or two days, which generates some tension.

Another essential quality is the “initiative.” A good lawyer can’t wait for the demand to come to him, but he should always be alert for all company events to take risks and point out improvements, avoiding damaging facts to happen, which could have occurred if the legal team hadn’t predicted.

Finally, a lawyer must be resilient, persistent and always firm during a complex process that causes fear in many people. When other areas do not know legal issues are put in a crisis situation, they get a certain “comfort” in lawyers to understand how well things are, so the lawyer should always be firm and positive, providing a wellness atmosphere in the company.

How can in-house legal teams be an integral part of their firm’s business? How does the legal team demonstrate its value to the company?

Initially all staff must understand deeply the business of the company. In the example of Cast group, an IT company, we have to understand all the products and solutions we offer to the market. We need to know the business process, the technologies involved, how our employees provide services to customers, and how the government sees and monitors the day-to-day activities of the
company.

The demonstration of value comes from the moment that the legal, not only says what is legal or illegal, but presents solutions for the entire structure of the company. That is, being part of the decision-making of the CFO, operations, M&A, and all the others company departments, helping the company achieve greater results and operational efficiency.

Does the team use any “legal tech” products and do you find them a helpful management device?

In order to maintain a good control of all processes, the legal department must be equipped with a good control system, linked to the company’s ERP, in order to organize all information, to follow deadlines, strategies, as well as to provide information to other people affected by the company, such as the CFO or the owners themselves. Only through organised information it is possible to ensure the good running of all the demands we are responsible for. We also use a system that monitors bills while they are still in legislative authority, to keep up with future laws, so that when they are public, the company is ready to change.

What political, economic or regulatory changes have impacted the company and the team the most recently?

For 2019, perhaps the most relevant change has been the economic one. Cast group has its incomes coming largely from government customers, and with the account adjustments that the new government has been making, all existing contracts are automatically rethought, as well as the conditions for new contracts. With all this, the company must rethink its market share, demonstrating to the government that IT service can be of great help in costs containment by improving internal processes and systems. Therefore, the legal team should be up-to-date with the country, company and technology scenario to advise on contract optimisation, prepare quality dossiers proving the quality and legality of existing contracts and support throughout the bidding processes, which becomes very strategic.

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