In a significant development within the Tata Group's governance structure, Tata Trusts has circulated a proposal to reappoint Mehli Mistry as a trustee for three key philanthropic bodies - Sir Ratan Tata Trust, Sir Dorabji Tata Trust, and Bai Hirabai Jamsetji Tata Navsari Charitable Institution. The reappointment would grant Mistry lifetime trustee status.

Mistry, a close confidant of Ratan Tata, was first appointed in 2022, and his current three-year term is set to end on October 28. This proposal comes amid reported internal divisions within Tata Trusts, with a vertical split between one faction aligning with Chairman Noel Tata and another comprising loyalists of Ratan Tata.

The Unanimity Condition

In a surprising move, Mistry, along with three other trustees, had previously conditioned their approval of Venu Srinivasan's lifetime reappointment on unanimous approval for all future trustee renewals. This condition has taken some trustees by surprise, as the current framework for Tata Trusts does not include provisions for conditional approvals or retrospective withdrawal of support.

Key Details of the Reappointment Process

Government Involvement

The matter has reached government level, with Tata leadership meeting Union Home Minister Amit Shah and Finance Minister Nirmala Sitharaman. The government has advised both sides to resolve their differences amicably.

Ownership Structure

Tata Trusts holds a 66% stake in Tata Sons, the holding company of the Tata Group, which comprises around 400 companies including 30 listed entities. The ownership structure is as follows:

This development highlights the intricate dynamics within the Tata Group's governance structure and may have significant implications for future decision-making processes in Tata Trusts. The outcome of this situation could potentially influence the balance of power within one of India's most prominent business conglomerates.

Tata Trusts, a significant shareholder in Tata Sons, has begun the process of renewing terms for its trustees, sparking discussions about governance within the organization. The move comes as the trust seeks to maintain stability in its leadership structure while addressing alleged differences among trustees.

Key Developments

• Tata Trusts has issued a circular for the renewal of Venu Srinivasan's term as trustee of Sir Dorabji Tata Trusts.
• Trustees are required to approve the renewal before October 23.
• Mehli Mistry's term is also expected to be up for renewal soon.
• Venu Srinivasan currently serves as a trustee in both Tata Trusts and as a nominee director on the Tata Sons board.

Ownership Structure

Governance Discussions

Reports have suggested alleged differences among trustees regarding processes and objectives. However, industry experts characterize these as normal organizational disagreements rather than significant threats to the trust's operations.

Initially, four trustees - Darius Khambata, Jehangir HC Jehangir, Pramit Jhaveri, and Mehli Mistry - were reportedly challenging leadership. Sources close to the trustees have since denied these claims, indicating that the reports may have been overstated.

Industry Expert Recommendations

Some industry experts are advocating for Tata Sons to consider a public listing. They argue that such a move could:

1. Ensure greater transparency in operations
2. Provide exit opportunities for minority shareholders
3. Particularly benefit the Shapoorji Pallonji Group, which has been advocating for listing to protect its investment

As Tata Trusts navigates these governance discussions and renewal processes, the organization continues to play a crucial role in the larger Tata Group ecosystem. The outcome of these renewal decisions and any potential changes in governance structure could have significant implications for one of India's most prominent business conglomerates.