New Delhi: Tata Trusts has unanimously reappointed Venu Srinivasan as a trustee for life, and all eyes are now on the upcoming decision regarding Mehli Mistry’s renewal, amid reported internal divisions within the organisation.
The reappointment of Srinivasan this week, ahead of his term expiring October 23, comes amid reports of a vertical split within Tata Trusts – with one faction said to align with Noel Tata, who took over as chairman following Ratan Tata’s death, and the other comprising those seen as loyalists of the former doyen.
A source with direct knowledge of the matter said reappointment of Srinivasan, chairman emeritus of TVS Group, was unanimous.
Tata Trusts declined to comment on the news.
The focus now shifts to the reappointment of Mistry, whose term ends October 28, with opinions divided on whether his continuation is automatic or requires unanimous approval from the trustees for a lifetime tenure.
Tata Trusts, the umbrella body overseeing several charitable trusts including the Sir Dorabji Tata Trust and the Sir Ratan Tata Trust, holds a 66 per cent stake in Tata Sons – the holding company of the 156-year-old Tata Group, which comprises around 400 companies, including 30 listed entities.
“Renewal and fresh appointment is required to be unanimous as per past practice. Renewal, after which it will be for life, requires unanimous approval,” said a source.
However, another person said, “The reappointment is automatic and it is applicable to all the trustees.”
Citing minutes of the joint meeting of the trustees of the Sir Dorabji Tata Trust and the Sir Ratan Tata Trust held October 17, 2024, the person said it was resolved that on the expiry of tenure of any trustee, the trustee would be reappointed by the concerned trust without any limit being attached to the period of tenure.
As per the resolution, any trustee who chose to vote otherwise would be in “breach of their commitment and is not fit and proper to serve on Tata Trusts by such conduct”, the person added.
Moreover, the person said if there is any breach of the commitment by a Trustee, it will necessitate 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”.
Also, according to the October 17, 2024 resolution, all trustees are appointed on a long-term and life basis and trusteeship would be revisited upon reaching 75 years of age.
PTI
