By Admin - Important meeting of Tata Trust on 8th June, many big issues.
- Listing of Tata Sons and tenure of Chairman Chandrasekaran are the main agenda.
- Review of loss making businesses, as well as legal disputes.
Tata Trust Meeting Today: An important meeting of Sir Dorabji Tata Trust (SDTT) and Tata Education and Development Trust is going to be held on 8th June (Monday). After the demise of former Tata Sons Chairman Ratan Tata and amid the recent legal controversies, the eyes of the entire corporate world are on this meeting. In this meeting, many big issues can be discussed and decisions can be taken, which can have a big impact on the shares of Tata Group companies.
Discussion on listing of Tata Sons
In the meeting to be held today, the topic of Tata Sons’ entry into the stock market may be discussed. As per Reserve Bank of India (RBI) rules, it is mandatory for Tata Sons to be listed in the stock exchange under ‘Upper Layer NBFC’. If the listing is approved in the meeting, it could prove to be the largest and most awaited IPO in the country’s corporate history.
N Chandrasekaran’s tenure
There is a proposal to directly extend the tenure of Tata Group’s current Chairman N Chandrasekaran till the year 2032. If this also gets approved, it will show that the Trust has full confidence in the current leadership. Earlier, Tata Trusts chief Noel Tata had clearly said that until the issues like turnaround plan and listing of the loss-making business are completely resolved, it would be too early to discuss extending the tenure of the chairman, hence it is possible that it may be reviewed only today or there may be a situation of postponement.
Review of loss making business
The CEOs of Tata Group’s three largest and long-running loss-making ventures – Air India, Tata Neu and Tata Electronics – can present before the trustees their business plans and funding requirements.
On May 26, the board of Tata Sons met to take business plans from some other loss-making companies of Tata Group – Air India, Tata Electronics, Tata Digital, Tejas Networks and Agartas. During this, the CEOs of three businesses – Air India, Tata Digital and Tata Electronics – presented turnaround plans along with performance projections for the next three years. Due to paucity of time, Tejas Networks and Agratas could not give the presentation.
Experts say that due to restrictions on SRTT’s ability to call meetings, no important decisions can be taken, hence issues like Tata Trusts Vice Chairman Venu Srinivasan’s continuation on the board, nominee director of trusts in Tata Sons and listing of Tata Sons are likely to remain unresolved, although these can be discussed. After the meeting of June 8, there will be an important meeting of Tata Sons on June 12, in which the listing of Tata Sons and the re-appointment of Chairman N Chandrasekaran can be discussed. Chandrasekaran’s tenure as chairman will end in February 2027.
What is the legal dispute?
Recently the controversy started when a complaint was filed with the Maharashtra Charity Commissioner. In this, a demand was made to investigate the transfer of 833 shares of Tata Sons from Nawazbai Ratan Tata Trust (NRTT) to late Naval H. Tata in January 1989. Petitioner Suresh Tulsiram Patilkhede (who is represented by advocate Katyayani Aggarwal) alleged in his complaint that on January 18, 1989, 833 equity shares of Tata Sons were transferred from the ‘Navajbai Ratan Tata Trust’ to the late Naval H. Tata (Ratan Tata’s father and Noel Tata’s grandfather).
The petitioner claims that this transfer was done without proper authority and without valid legal documents, which is a violation of the Public Charitable Trust. The petitioner has raised questions on the legality of this transaction and has demanded regulatory intervention on it. In the complaint, concern has also been expressed over Noel Tata’s participation in discussions related to this case. The argument is that he is one of the heirs who ultimately got these shares. However, the Trust has termed these allegations as baseless.
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