Role of Company Structure in Governance
Shri R. Gandhi, former Deputy Governor Reserve Bank of India and Financial Sector Policy Expert and Adviser, delved into the intricate role of company structure within the realm of governance, with a particular focus on its relevance within the Account Aggregator (AA) ecosystem. He pointed out that, unlike platforms, the AA ecosystem comprises multiple participants plugging in, necessitating a novel governance approach that accommodates the diverse expectations of these stakeholders.
Gandhi elucidated how a company structure can effectively blend commercial interests with communal well-being in the unique cross-sectoral nature of the AA ecosystem. He mentioned how a user-led entity is empowered to shape policies, define services, and establish governance rules, harmonizing the pursuit of profit with the broader community’s welfare. Gandhi contended that such a structure is conducive to commercial viability while benefiting the community.
Gandhi emphasized the company structure as an invaluable platform for stakeholders to converge, enabling the exchange of perspectives, representation of interests, and collaborative resolution of shared challenges. A functioning governing entity can also provide essential services for the ecosystem and act as an arbiter in grievance redressal and dispute resolution. Crucially, such a company structure boasts legal enforceability, endowing it greater resilience than alternative frameworks such as associations.
Further, he also acknowledged the challenges of advocating for company structures beyond the financial sector. He stresses the importance of reevaluating the existing structures, which predominantly focus on data users’ capabilities and restrictions, and advocates for a more holistic approach that empowers consent managers. Ultimately, he insisted on exploring alternative governance approaches to enforce rules and regulations effectively, particularly in the dynamic and evolving landscape of the Account Aggregator ecosystem.