Jaco Theunissen: The evolving role of the GC in South Africa

As one of Africa’s leading economies, South Africa boasts a sophisticated legal market that encompasses a wide range of practice areas and industries. In recent years, the role of the general counsel in the country has undergone significant transformation, reflecting broader shifts in the global business landscape. Traditionally focused primarily on legal compliance and risk management, general counsel in South Africa are now being called upon to play a more strategic role within their organisations.

We have had the privilege of speaking with Jaco Theunissen, group legal and company secretary at ACTOM (Pty) Ltd, to gain first-hand insights into this evolving landscape.

Jaco’s journey into the legal profession began with the completion of his LLB degree in 2008, followed by a master’s degree in law. He then embarked on his legal career by undertaking articles in the capital of South Africa in 2010, ultimately being admitted as an attorney and conveyancer in the North Gauteng High Court, Pretoria in 2011.

Subsequently, Jaco gained valuable experience as a contracts engineer at Foster Wheeler (now Wood PLC), contributing to significant projects such as the Sasol FT Wax Multi-Billion project in Sasolburg. Joining ACTOM (Pty) Ltd in 2013, he assumed the role of divisional legal officer and steadily progressed to become group commercial and legal officer by 2018. In 2022, Jaco was appointed as group legal and company secretary, entrusted with overseeing legal and corporate governance affairs for the ACTOM group.

GC: What was it that attracted you to working in-house? 

Jaco Theunissen (JT): I have always been fascinated by the intersection of law and business. Working in-house allows me to merge these two disciplines in a unique way. What excites me even more is the opportunity to collaborate not just with other lawyers, but also with professionals from various backgrounds like engineers, accountants, and project managers. This dynamic setting offers a rich and diverse perspective that I find both stimulating and fulfilling.

GC: How do you perceive the traditional role of the general counsel evolving in South Africa? 

JT: I am enthusiastic about the evolving role of general counsel in South Africa, especially within larger organisations. A dedicated general counsel is indispensable for effective organisational functioning. The essence of a general counsel’s contribution lies in being hands-on, proactive, and forward-thinking, establishing proper governance practices and robust legal mechanisms to prevent disputes, amongst others, and alignment with the organisation’s strategic goals. Thus, the role of the general counsel is transitioning from traditional back-office support to actively engaging in high-level decision-making processes, where they contribute valuable insights spanning beyond legal considerations.

GC: Are there any new regulatory changes or market dynamics that have influenced this? 

JT: The landscape of statutory compliance in South Africa is undergoing rapid expansion, with new regulations being introduced frequently. This influx of regulatory changes spans various sectors and industries, ranging from financial services to environmental protection. As a result, organisations operating in South Africa must remain vigilant and adaptive to ensure compliance with these evolving legal requirements, not only from a compliance point of view but from a strategic operational point of view as well. In addition, the professional management of contractual relationships is gaining importance. In the past, informal agreements may have sufficed for certain business transactions. However, in today’s complex and highly regulated environment, precise execution of contractual obligations is essential for mitigating risks and fostering successful business relationships.

GC: What do you see as the key challenges facing general counsel in South Africa today, and how are these challenges reshaping the responsibilities and priorities of the role? 

JT: It is often said that great ideas can encounter obstacles in the legal department, and there is some truth to that notion. Despite this perception / challenge, general counsel must identify and communicate all potential legal risks, even when they may not align with the preferences of colleagues in sales and operations. Another challenge for general counsel is the wide range of laws they need to keep up with, which mandates that general counsel obtain and continually refresh their legal expertise across a diverse array of legal domains rather than focusing solely on one area of specialisation.

GC: With the evolving role of the general counsel in South Africa, how do you see the dynamics of the relationship between in-house legal teams and external counsel shifting, and what strategies do you employ to ensure effective collaboration and maximise value?

JT: Both in-house and external legal counsel fulfil essential functions. Nonetheless, I contend that organisations could cut down on legal expenses by bolstering their in-house legal teams to address both legal and commercial issues, rather than consistently turning to external counsel. Echoing the saying: ‘horses for courses’, it is important for general counsel to identify the most suitable external counsel for each task and to ensure that external counsel thoroughly understands the organisation’s risk appetite and business conduct. Fostering and maintaining strong relationships with external counsel, along with providing comprehensive briefings on the instructions at hand, are also particularly important.

GC: Could you provide examples of innovative approaches or initiative that you have implemented or observed in the South African legal landscape that reflect the evolving role of the general counsel?

JT: From a group perspective, an effective strategy we are implementing involves integrating in-house general counsel within organisational divisions to ensure that group divisions receive consistent and comprehensive legal and commercial guidance on a daily basis. By embedding general counsel within day-to-day operations, we proactively address potential disputes and legal issues, minimising the need for reactive measures and litigation.

GC: As the role of the general counsel continues to evolve in South Africa, do you believe it has an impact on your leadership style within the legal department of organisation as a whole? If so, how has this evolution influenced your approach to leading and managing your team? 

JT: Through my experience, I have found that adopting a coaching style of leadership, as opposed to a strictly results-oriented and autocratic approach, is more conducive to effective management of in-house lawyers. This leadership style empowers members of the legal team to leverage their legal expertise and judgment on a case-by-case basis. Given their integration into day-to-day operations, general counsel can provide valuable insights and guidance that are rooted in a thorough understanding of the intricacies of the organisation.

GC: Looking ahead, do you anticipate further changes in the role of the general counsel within South African organisations, and how do you plan to adapt and prepare for these changes?  

JT: The emergence of artificial intelligence (AI) may lead some organisations to rely more on AI. However, it is crucial to educate businesses on integrating AI to automate legal processes, amongst other things, rather than aiming to replace human expertise. AI should be seen as a tool to streamline workflows and improve efficiency, complementing rather than replacing human judgment. Aside from advancements in AI, there is a notable trend emerging where general counsels are transitioning into more strategic and operational roles, moving beyond their traditional back-office support function.

Jaco Theunissen, group legal and company secretary, ACTOM (Pty) Ltd
Sara Maggi, editorial – GC Powerlist