Amid Internal Dispute, Tata Trusts Names Venu Srinivasan as Lifetime Trustee
Amid Internal Dispute, Tata Trusts Names Venu Srinivasan as Lifetime Trustee
Inside Tata Trusts, a leadership rift unfolds as Venu Srinivasan is unanimously reappointed as trustee for life, while Mehli Mistry's renewal stirs debate on whether unanimity is required.
With rumored internal conflicts within the company, all eyes are now on the impending decision regarding Mehli Mistry's renewal after Tata Trusts unanimously reappointed Venu Srinivasan as a trustee for life. A vertical split within Tata Trusts is reportedly occurring, with one faction reportedly aligning with Noel Tata, who became chairman after Ratan Tata's death, and the other group consisting of those perceived as loyalists of the former doyen. Srinivasan was reappointed this week, ahead of his term ending on October 23.
The reappointment of Srinivasan, the emeritus chairman of TVS Group, was unanimous, according to a source with firsthand knowledge of the situation. Regarding the news, Tata Trusts chose not to comment. The topic of discussion now turns to Mistry's reappointment. His term expires on October 28. There is disagreement over whether the trustees must unanimously approve his continuation or if it is automatic.
"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."
The person cited the minutes of the October 17, 2024, joint meeting of the trustees of the Sir Dorabji Tata Trust and the Sir Ratan Tata Trust, which concluded that it was decided that any trustee who had reached the end of their term would be reappointed by the relevant trust with no time limit.
The individual added that any trustee who voted differently would be in "breach of their commitment and is not fit and proper to serve on Tata Trusts by such conduct" in accordance with the resolution.
Furthermore, the individual stated that 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," would need to be reopened if a Trustee violated the agreement.
The October 17, 2024 resolution also states that all trustees are appointed for a life term and that their terms will be reviewed when they turn 75.
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