Tata Trusts boardroom battle: Meet the dramatis personae from Noel Tata to Darius Khambata

TATA Trusts

Differences over the reappointment of a director to Tata Sons Ltd’s board have escalated into a broader dispute among the trustees of the Tata Trusts. The October 10 board meeting of Tata Trusts will be closely watched amid growing disagreements over governance and transparency, as well as the mounting speculation around a potential Tata Sons listing.

As the tensions mount, here’s complete guide of who, what, where and key players of the Tata saga:

What happened?

It all began on September 11. As per Economic Times, former Defence Secretary Vijay Singh stepped down as Tata Sons’ director.

According to the ET report, Singh's exit from the Tata Sons board followed the lack of support for his reappointment from four trustees - Mehli Mistry, Pramit Jhaveri, Jehangir Jehangir, and Darius Khambata.

His reappointment had become necessary under a resolution passed last year after Noel Tata took charge as chairman, mandating that nominee directors be reappointed annually once they cross the age of 75.

The situation reportedly escalated when the four trustees sought to nominate Mehli Mistry to the Tata Sons board - a move opposed by Noel Tata and Venu Srinivasan. Officials cited by ET said that such decisions require unanimity, and any attempt to push through a nomination without consensus was viewed as "not the Tata way of doing things."

Who are the key players?

Tata Trusts: It is a group of charitable foundations that holds the majority ownership of the Tata Group's holding company, Tata Sons. This unique structure means that the dividends generated by the Tata Group's companies are channelled into charitable initiatives for social developments.

Noel Tata is the Chairman of Tata Trusts and has held senior leadership roles across multiple Tata Group companies, including Trent, Tata International, and Tata Investment Corporation.

Venu Srinivasan is a prominent Indian industrialist and currently Vice Chairman of Tata Trusts, also known for leading TVS Motor Company as its Chairman.

Jehangir HC Jehangir is a trustee associated with Tata philanthropic trusts, participating in the governance of several Tata family charitable institutions.

Darius Khambata is a lawyer and trustee on multiple Tata trusts, recognised for his legal expertise and public service.

Pramit Jhaveri is a banker and director known for his long service at Citibank India, where he was CEO and now provides guidance on philanthropic and corporate boards

Who are Tata Trusts members?

Headquartered in Mumbai, Tata Sons is one of India’s biggest business entities. The promoter of Tata Group, Tata Sons is the principle investment holding company.

What’s Tata Sons’ leadership structure?

So why exactly has the government decided to step in? Simple because of the sheer size and impact of Tata Sons. And how is that it all this is linked to Tata Trusts? Because 66% of the equity share capital of Tata Sons is held by philanthropic trusts, which support education, health, livelihood generation, and art and culture.

Here is the shareholding patter of Tata Sons

One of the three executors of Sir Ratan Tata's will, Mehli Mistry is a first cousin of the late Cyrus Mistry. A lifelong staunch supporter of Ratan Tata, Mistry was closely involved in caring for him during his later years and supported him in his battle against Cyrus Mistry.

In 2022, Mistry was appointed as a trustee on the boards of the two main Tata charities — the Sir Ratan Tata Trust and the Sir Dorabji Tata Trust.

It is his proposed appointment to the Tata Sons board along with Vijay Singh's steeping down that sparked the latest corporate showdown at Tata Trusts. As per an ET report, while Darius Khambata and Pramit Jhaveri have backed Mistry’s appointment, Noel Tata and Venu Srinivasan have opposed the move.