The Governance Gap

Company Secretary Rahul Sahasrabuddhe discusses why strong governance is vital when building a business. Specialising in Corporate & Securities Law and Governance Advisory, chose this profession for its unique position at the intersection of law, business, and decision-making, with a focus on shaping governance and regulatory outcomes. Two stories, both beginning with friendship, enterprise, and an unarticulated belief that trust can substitute structure. Nikhil Joshi and Sandeep Kulkarni built a thriving manufacturing business in Thane. For years, decisions were intuitive, undocumented, and undisputed. As the company grew, the lack of a shareholders’ agreement and defined roles turned strategic differences into operational paralysis and costly litigation. Ultimately, the absence of formal governance and a dispute resolution framework transformed it into a failed venture, proving that intuition is no substitute for institutional scaffolding. Contrast this with the journey of Aditya Deshmukh and Prasad Oak, founders of a similar enterprise. They too reached a point of difference, but before positions hardened, a Company Secretary was engaged. The precise intervention mapped historical conduct and clarified rights through a shareholders' agreement covering reserved matters, voting, and exit mechanisms. Formalised board processes ensured compliance with the Companies Act, 2013, channeling disagreements effectively. Consequently, Prasad exited on agreed terms while Aditya stabilised the company. This success reflects timely governance, not luck or temperament. Sahrasbuddhe’s early experience with institutions such as the National Securities Depository Limited and National Stock Exchange of India helped build a strong foundation in market regulation. He also maintains a keen interest in current affairs, history, politics and geopolitics– a breadth of knowledge that supports a balanced and strategic professional perspective.