MUST READ | Tata Sons reviews its Articles of Association to meet SEBI listing regulations: Report
SDTT came under scrutiny following a boardroom confrontation at Tata Sons on September 17. Earlier this year, SRTT was frozen by the Charity Commissioner over alleged violations of norms.
Tata Trusts vice-chairmen Venu Srinivasan and Vijay Singh, both trustees of SDTT, had raised concerns about governance lapses. They accused SDTT of involving itself in Tata Sons’ commercial matters instead of focusing on its philanthropic mandate. Their complaints also questioned the perpetual trusteeship of Noel Tata, chairman of Tata Trusts, and called for an investigation into SDTT’s administration and governance.
DON'T MISS | Noel Tata evokes founding principles to guide Tata Trusts' new strategic shift
The dispute escalated after the September 17 Tata Sons board meeting. Srinivasan supported resolutions backing a third term for chairman N Chandrasekaran after his tenure ends in February 2027, and the listing of Tata Sons as mandated by the Reserve Bank of India. Noel Tata opposed both proposals and used his veto to block Chandrasekaran’s reappointment.
Srinivasan’s vote in favour of a third term sparked controversy over the validity of a casting vote to break the deadlock among nominee directors, with legal opinions divided. Tata Sons’ Articles of Association require an affirmative majority among nominee directors for key decisions. No voting took place on the listing proposal.
The confrontation followed an SDTT resolution proposing that Srinivasan recuse himself from the board deliberations due to his support for listing, which contradicts Tata Trusts’ position. Srinivasan resisted the resolution and participated in the vote on Chandrasekaran’s tenure.
SDTT and SRTT hold 27.98% and 23.56% stakes in Tata Sons, respectively. Their governance disputes are significant for the group’s ownership structure.