Big week at Tata Trusts: Terms of two key trustees, Venu Srinivasan and Mehli Mistry, up for renewal
This week, Tata Trusts faces a pivotal decision as the terms of trustees Venu Srinivasan and Mehli Mistry are nearing conclusion, requiring board renewal, as mentioned in a report. Tata Trusts, which holds a majority stake in Tata Sons, circulated a resolution seeking renewal of Srinivasan’s term as trustee and vice-chairman of the Sir Dorabji Tata Trust (SDTT).
According to a report in The Economic Times, Srinivasan’s term ends on Monday. Mehli Mistry’s term is also up for renewal.
Once approved, these appointments grant lifetime tenure, influencing the governance of the Trusts and Tata Sons. The SDTT board includes Noel Tata, Srinivasan, Vijay Singh, Pramit Jhaveri, Mehli Mistry, and Darius Khambata. Internal consensus is crucial for these appointments, which come amid divisions among trustees and close scrutiny of Tata Sons’ role in strategic national sectors.
As per the report, trustee renewal at Tata Trusts requires unanimous approval. A formal reappointment must occur before lifetime tenure is granted. A person familiar with the matter said that if even one trustee does not approve, the renewal does not go through. Recent divisions have made this process more complex, as any opposition can block a renewal. The Trusts have not commented publicly, but sources say the board is keenly aware of the need for consensus.
Meanwhile, the government is monitoring the situation, as Tata Group companies are involved in key national projects in electronics, defence, and other strategic areas.
Tata Trusts collectively hold 66 per cent of Tata Sons, with SDTT and the Sir Ratan Tata Trust (SRTT) together holding about 51 per cent. The Mistry family of the Shapoorji Pallonji Group is the largest minority shareholder at 18 per cent.
Noel Tata’s term as chairman of Tata Trusts and SDTT was renewed for life in January after his three-year trustee term ended. The move set a precedent for lifetime appointments upon renewal, making this round of renewals especially significant. Without a conflict resolution mechanism in the Trust deeds, the process depends on trustee cooperation.
Divisions have persisted since September, when four trustees – Darius Khambata, Mehli Mistry, Pramit Jhaveri, and Jehangir Jehangir – voted to remove Vijay Singh as a Tata Sons board nominee, breaking precedent. They then suggested Mehli Mistry for the Tata Sons board, but this was blocked by Noel Tata, Venu Srinivasan, and Vijay Singh. These events have shaped the current atmosphere, with some trustees now seeking to avoid further conflict.
