Proactive Risk Management Is Essential To Navigate Emerging Challenges Effectively: Jaydeep Mehta
Jaydeep Mehta is a professional with extensive experience 34 years in the legal and secretarial profession, corporate & general affairs, having expertise in the areas of corporate legislation, legal due diligence & compliance, among others. He is also a qualified Independent Director certified by the Indian Institute of Corporate Affairs (IICA), MCA. He is an Advocate-on-Record registered with the Bombay High Court as well as the Gujarat High Court and practices in Corporate & Commercial laws, Securities Law, Insolvency laws, and Property laws. In this interview with Board Stewardship, Jaydeep shares his legal insights relevant to Boards and Board Directors.
- How has your diverse legal background shaped your approach to Corporate Governance and boardroom dynamics?
My diverse legal background has honed my ability to approach Corporate Governance and boardroom dynamics with a blend of techno-legal knowledge and practical insight. By navigating complex legal frameworks and interacting with varied stakeholders, I focus on fostering transparency, strategic decision-making, and compliance. This foundation enables me to provide tailored guidance that aligns with corporate objectives while upholding ethical standards and stakeholder trust and integrity.
- As an arbitrator for two Indian stock exchanges, what challenges do you often encounter in dispute resolution, and how do you ensure impartiality in high-stakes cases?
The primary challenges include managing the complexity of financial instruments, ensuring adherence to regulatory frameworks, and addressing the expectations of disputing parties who may have significant financial stakes and divergent interests. To ensure impartiality, I maintain strict neutrality, rely on evidence-based assessments, and adhere rigorously to the principles of natural justice. Additionally, I stay updated on industry regulations and precedents to provide balanced and well-reasoned awards, fostering trust in the arbitration process.
- As an Independent Director on multiple Boards, what governance practices do you believe are essential for companies to maintain transparency and ethical conduct?
As an Independent Director, the following governance practices are essential for maintaining transparency and ethical conduct:
- Ensuring the Board actively monitors management’s performance & aligns company objectives with stakeholder interests.
- Establishing well-defined policies, codes of conduct, and a compliance framework to promote ethical behaviour across the organisation.
- Facilitating open communication channels for stakeholders and maintaining timely disclosures as per regulatory requirements.
- Implementing a strong risk management strategy and ensuring regular audits to uphold accountability.
- Supporting an effective whistle-blower policy to encourage reporting of unethical practices without fear of retaliation.
These practices collectively foster trust, mitigate risks, and ensure the organisation operates responsibly.
- With your experience as a legal professional and Independent Director, how do you think legal compliance can be better integrated into Board decision-making to ensure proactive risk management?
Legal compliance can be integrated into Board decision-making by fostering a compliance-driven culture, aligning compliance with strategy, leveraging legal advisors proactively, staying updated on regulatory changes, and conducting regular Board training. This ensures risks are managed proactively and decisions are sustainable.
- What are the emerging legal risks that Boards should be aware of, particularly in industries facing rapid technological advancement?
Boards in tech-driven industries face risks like evolving data privacy laws, cybersecurity threats, AI ethics, IP protection, regulatory compliance, ESG mandates, litigation exposure, and cross-border legal conflicts. Proactive risk management and expert legal guidance are essential to navigate these challenges effectively.
- What advice would you give to aspiring legal professionals who want to take on leadership roles as Independent Directors or positions in Board advisory?
To excel as an Independent Director or Board advisor, aspiring legal professionals should deepen their expertise in corporate laws, governance, and compliance while broadening their understanding of industry dynamics and financial strategies. Cultivating leadership skills such as strategic thinking and conflict resolution is essential, along with building a strong professional network. Pursuing certifications in corporate governance and maintaining integrity and independence will enhance credibility and trust, enabling effective contribution to boardroom decision-making and advisory roles.
