Tata Trusts has unanimously reappointed Venu Srinavasan as a “trustee for life”. The focus now shifts to the reappointment of Mehli Mistry, amid reports of internal strife within the organisation.
“Renewal and fresh appointment has to be unanimous as per past practice. A renewal, after which it will be for life, needs unanimous approval,” PTI quoted a source as saying. Another source said that “the reappointment is automatic and it is applicable to all the trustees”.
The reappointment of Srinivasan, who is chairman emeritus of TVS Group, has come before his current tenure expires on 23 October. It also comes amid reports of a split in Tata Trusts over constitution of the board. One faction is reportedly aligned with Chairman Noel Tata and the other is led by Mehli Mistry of Shapoorji Pallonji Group, which holds 18.73% stake in Tata Sons.
The focus now shifts to the reappointment of Mistry, whose term ends on 28 October. Opinion is divided on whether his continuation is automatic or requires unanimous approval from the trustees for a lifetime tenure.
Tata Trusts declined to comment on Venu Srinivasan’s appointment.
What is Tata Trusts?
Tata Trusts, the umbrella body overseeing several charitable trusts including the Sir Dorabji Tata Trust and the Sir Ratan Tata Trust, holds a 66% stake in Tata Sons Pvt. Ltd.—the holding company of the salt-to-software group that includes 30 listed companies and 400 entities.
How is trusteeship decided?
According to PTI sources who cited minutes of a meeting on 17 October 2024, a Tata Trusts trustee, upon completion of tenure, can be reappointed for life but the vote has to unanimous.
As per the resolution, any trustee who chooses to vote otherwise would be in “breach of their commitment and is not fit and proper to serve on Tata Trusts by such conduct”, the source said.
If there is any breach of the commitment by a trustee, it will necessitate the reopening of all resolutions passed by Tata Trusts, “including appointment of Noel Tata as a director on the Board of Tata Sons, which formed part of the 17 October 2024 trustees’ resolution”.
Also, all trustees are appointed on a long-term and life basis and trusteeship would be revisited upon reaching 75 years of age.