Tata Trusts wants to reappoint Mehli Mistry as lifetime trustee
What's the story
Tata Trusts is gearing up to seek approval from all its trustees for the reappointment of Mehli Mistry on the Sir Dorabji Tata Trust Board. His current term ends on October 28. If approved unanimously, Mistry will be appointed as a lifetime trustee, with his position subject to review once he turns 75 years old.
Trustee renewal
Venu Srinivasan also reappointed as lifetime trustee
In a separate development, Venu Srinivasan, the Chairman Emeritus of TVS Motor Company, has been re-appointed as a lifetime trustee on the Sir Dorabji Tata Trust Board. Tata Trusts has already sent out a note seeking approval from all trustees for Srinivasan's renewal. The responses are expected by October 23.
Ownership structure
Ownership structure of Tata Sons
The Sir Dorabji Tata Trust and Sir Ratan Tata Trust together own 51% stake in Tata Sons. The Shapoorji Pallonji Group owns around 18%. Srinivasan is a trustee on both these trusts and also serves as a nominee director on the board of Tata Sons.
Governance concerns
Trustee renewals amid reported internal differences
The new trustee renewals come amid reports of internal differences within Tata Trusts, which control about 66% of Tata Sons. However, as per CNBC-TV18, sources familiar with the matter have downplayed these rifts, saying differing opinions are normal in large organizations. Experts have also called for stronger governance at Tata Sons and some have even suggested listing the holding firm to improve transparency and provide minority shareholders an exit route.