In a dramatic turn of events, most Tata Trusts trustees have reportedly voted for the ouster of Mehli Mistry. This comes amid a tussle at Tata Trusts that have split the trustees at a crucial time.
According to a report in The Economic Times, Mistry, once regarded as one of Ratan Tata’s closest confidantes, now faces potential ouster after chairman Noel Tata, vice chairman Venu Srinivasan and trustee Vijay Singh declined to approve the renewal of his term. This would end his tenure at the Tata charitable bodies. It added that with three trustees voting against his renewal, Mistry’s ouster becomes a majority decision.
Sir Ratan Tata Trust (SRTT) and Sir Dorabji Tata Trust (SDTT) hold 51 per cent in Tata Sons SDTT trustees include Noel Tata, Venu Srinivasan, Vijay Singh, Mehli Mistry, Pramit Jhaveri and Darius Khambata, while at SRTT, trustees are Noel Tata, Venu Srinivasan, Vijay Singh, Jimmy Tata, Jehangir HC Jehangir, Mehli Mistry and Darius Khambata.
While in SDTT it is a majority vote, in SRTT too – since Jimmy Tata does not typically participate – it is a majority vote, the report added.
Trustees Darius Khambata, Pramit Jhaveri, and Jehangir Jehangir have given their approval but Mistry’s fate is most likely sealed.
TATA TRUSTS TUSSLE
Last week, Mehli Mistry had set a condition that all future trustee renewals must receive unanimous approval from the board. He communicated this requirement via email to fellow trustees on October 21, stating that his own continued approval as a trustee hinges on the application of this rule. The stipulation holds particular significance for Mistry himself, as he was the first to be directly impacted by this new condition.
In his communication, Mistry asserted that should any renewal resolution for trustees fail to achieve unanimity, he would retract his approval.
Following the passing of Ratan Tata, the Tata Trusts had initiated a policy under which reappointments are for life, provided the renewal of a trustee’s current term is approved unanimously. The precedent was set with the renewal of Noel Tata’s term for life in January this year. Trustees whose terms are unanimously approved will serve without a fixed tenure.
Tensions within the Tata Sons board have been ongoing since September, when trustees Darius Khambata, Mehli Mistry, Pramit Jhaveri, and Jehangir Jehangir voted to remove Vijay Singh as a board nominee, breaking established practice. Subsequently, they proposed Mistry as a board member, but this was blocked by votes from Noel Tata, Venu Srinivasan, and Vijay Singh.
