- Noel Tata and Venu Srinivasan reportedly voted against extending Mehli Mistry's term on Tata Trusts board
- Mistry may pursue legal options, sources told NDTV Profit, after being potentially removed from the board
- Mistry joined the board last week in voting to approve Srinivasan's life trusteeship
The power struggle in the Tata Trusts - the nonprofit and philanthropic group that collectively owns about 66 per cent of Tata Sons - seemed set to explode Tuesday after Noel Tata, Venu Srinivasan, and Vijay Singh reportedly voted against extending Mehli Mistry's trusteeship.
Mistry joined the board last week in voting to approve Srinivasan's life trusteeship and may have been expecting that favour to be returned, despite reportedly leading a challenge. Sources told NDTV Profit he may now pursue legal options. A resolution passed last year granted existing trustees a life term.
The resolution, the text of which was accessed by NDTV Profit, said "... on the expiry of tenure of any trustee, that trustee will be re-appointed... without any limit being attached to period of tenure... in accordance with the law".
However, sources told news agency PTI that trusteeship renewals "are required to be unanimous, per past practice... (but) renewal for life requires unanimous approval", suggesting Mistry's appointment as a trustee-for-life needed an active sign-off from other board members.
If the vote to remove Mistry stands, he will be ejected from the board, potentially ending a rift tht many business analysts felt could undermine the stability of the Tata Group, a corporate behemoth whose listed entities have an estimated total market capitalisation of Rs 25 lakh crore.
That rift could impact strategic decisions at Tata Sons, which is the Tata Group's principal holding company, and emerged at a September 11 board meet to consider the reappointment of ex-Defence Secretary Vijay Singh as a nominee-director to the former's board.
Trusts Chairman Noel Tata and trustee Srinivasan (also Chairman Emeritus of the TVS Group), proposed the extension of his term. But four others - Mistry, Pramit Jhaveri, Jehangir HC Jehangir, and Darius Khambata - opposed it, leading to the resolution's rejection.
All of this played out amid whispers Mistry (and his camp) are trying to undermine Noel Tata, who was made Chairman after Ratan Tata's death in October last year.
NDTV Explains | Tata Trusts Infighting Over Board Seats. What Happened And Why
Mistry's camp, sources indicated, also claimed exclusion from vital decision-making and advocates for increased transparency and reforms in corporate governance.
Mistry's term of five years expired today.
READ | Tata Sons Chairman N Chandrasekaran's Term Extended By Tata Trusts
Before renewing Srinivasan's trusteeship, the board also renewed N Chandrasekaran's term as Tata Sons Chairman. He will continue in that position till 2032, NDTV Profit was told.
Concerns over the Tata Trusts rift, and its impact on the group, were expressed at the highest levels of the government. Top Tata executives, including Noel Tata and Chandrasekaran, met Home Minister Amit Shah and Finance Minister Nirmala Sitharaman earlier this month.
READ | Tata Trusts' "Cordial" Board Meet Amid Tata Sons Row: Sources
The two ministers strongly advised the Tata officials to maintain institutional stability of the trust and group, and resolve differences internally, people familiar with the development said.
With input from agencies
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