Tata Trusts Holds Cordial Board Meeting Amid Growing Governance Tensions at Tata Sons

The Tata Trusts' board convened on Friday for a meeting characterized by sources as "cordial," where routine matters were addressed amid speculation about divisions among trustees regarding board appointments and governance concerns.

Tata Trusts maintains significant control over India's most valuable conglomerate through its approximately 66 percent ownership stake in Tata Sons, the holding company that oversees the diverse salt-to-semiconductor business group.

"Today's meeting was routine, with no contentious issues discussed. There was no reference to past events," an insider familiar with the proceedings informed NDTV.

According to sources, the gathering primarily focused on discussing the charitable initiatives of the Trusts.

This meeting follows a significant encounter earlier in the week when Tata Group's leadership, including Tata Trusts Chairman Noel Tata and Tata Sons Chairman N Chandrasekaran, met with Union Home Minister Amit Shah and Finance Minister Nirmala Sitharaman on Tuesday as internal disagreements intensified.

The central government has reportedly advised Tata Trusts to preserve institutional stability and address any differences through internal channels, according to individuals knowledgeable about the situation.

Sources indicate that the primary point of contention appears to be board representation at Tata Sons, which oversees the 156-year-old conglomerate comprising approximately 400 companies, including 30 publicly listed enterprises.

The dispute originated during a gathering of six trustees of Tata Trusts, the umbrella organization representing various charitable foundations, including the Sir Dorabji Tata Trust and Sri Ratan Tata Trust.

The September 11 meeting was arranged to consider former defense secretary Vijay Singh's reappointment as a nominee director on the Tata Sons board.

The Tata Trusts has seven trustees in total, including Singh himself. Singh was not present at the September 11 meeting as his nomination was under discussion.

Following Ratan Tata's passing in October 2024, Tata Trusts implemented a policy requiring annual reappointment for nominee directors on the Tata Sons board once they reach 75 years of age.

During the September 11 meeting, the reappointment of 77-year-old Singh—who has served as a director since 2012 and trustee since 2018—was proposed by Trusts Chairman Noel Tata and Venu Srinivasan (chairman emeritus of TVS Group).

However, the remaining four trustees—Mehli Mistry, Pramit Jhaveri, Jehangir HC Jehangir, and Darius Khambata—opposed the recommendation, resulting in the resolution's defeat.

After this rejection, the four trustees attempted to nominate Mehli Mistry to the Tata Sons board, but Noel Tata and Venu Srinivasan resisted the proposal, emphasizing the necessity for a transparent process aligned with Tata's corporate values.

Subsequently, Singh voluntarily stepped down from his position on the Tata Sons board.