Tata Sons Board today announced Ratan Tata as the interim chairman of the Tata group, replacing Cyrus Mistry. Ratan Tata will be the interim chairman till a newly appointed selection committee is able to decide on the next chairman in the coming four months. Tata Sons is actually the holding company of the Tata Group. It is the promoter of the major operating Tata companies and holds significant shareholdings in these companies. Tata companies are commonly referred to as the Tata group and the Chairman of Tata Sons as Chairman of the Tata group.
According to the Tata Group website, about 66% of the equity capital of Tata Sons is held by philanthropic trusts endowed by members of the Tata family. The largest of these trusts are the Sir Dorabji Tata Trust and the Sir Ratan Tata Trust. These were created by the families of the sons of Jamsetji Tata, who was the founder of the group. Tata Sons is based in Mumbai.
The company’s principal activities are; to promote and invest in new businesses, to invest in operating companies to support their growth, to maintain its shareholding in major operating companies. Tata Sons is also the owner of the Tata name and several Tata trademarks. These have been registered in India and around the world. These are used by various Tata companies under a licence from Tata Sons as part of their corporate name and/or in relation to their products and services.
Tata Sons Board’s decision to replace Cyrus Mistry with Ratan Tata as the Tata group chairman (interim) has taken the corporate world by a storm. The decision was taken at a Board meeting today. The Board has constituted a Selection Committee to choose a new Chairman. The Committee comprises Ratan N. Tata, Venu Srinivasan, Amit Chandra, Ronen Sen and Lord Kumar Bhattacharyya, as per the criteria in the Articles of Association of Tata Sons. The committee has been mandated to complete the selection process in four months.