Reports of a vertical split within Tata Trusts coincide with Srinivasan’s reappointment this week, ahead of his tenure ending on October 23.
With rumored internal conflicts inside the company, all eyes are now on the impending decision of Mehli Mistry’s renewal after Tata Trusts overwhelmingly reappointed Venu Srinivasan as a trustee for life.
This week’s reappointment of Srinivasan, whose term ends on October 23, coincides with rumors of a vertical split within Tata Trusts, with one faction claimed to support Noel Tata, who succeeded Ratan Tata as chairman, and the other group consisting of people who are loyal to the former doyen.
The reappointment of Srinivasan, the emeritus chairman of TVS Group, was unanimous, according to a person with firsthand knowledge of the situation. Regarding the announcement, Tata Trusts chose not to comment. The topic of discussion now turns to Mistry’s reappointment. His term expires on October 28. There is disagreement about whether the trustees must unanimously approve his continuance or whether it is automatic.
With a 66% share in Tata Sons, the holding company of the 156-year-old Tata Group, which consists of some 400 firms, including 30 listed organizations, Tata Trusts, the umbrella organization in charge of various philanthropic trusts, including the Sir Dorabji Tata Trust and the Sir Ratan Tata Trust, is also involved. It is customary to get unanimous consent for both renewals and new appointments. A source said that unanimous consent is necessary for renewal, after which it will be for life. “The reappointment is automatic and it applies to all the trustees,” another individual said.
According to the minutes of the October 17, 2024, joint meeting of the trustees of the Sir Dorabji Tata Trust and the Sir Ratan Tata Trust, it was decided that any trustee who had reached the end of their term would be reappointed by the relevant trust with no time limit.
Any trustee who voted in a different way would be in “breach of their pledge and is not fit and competent to serve on Tata Trusts by such action,” the individual said, in accordance with the resolution. Furthermore, according to the individual, “any violation of the commitment by a Trustee will require the reopening of all resolutions passed by Tata Trusts, including the appointment of Noel Tata as a director on the Board of Tata Sons, which formed part of the October 17, 2024 Trustees’ resolution.”
The October 17, 2024 resolution further states that all trustees are selected for a life term and that their terms will be reviewed when they turn 75.