As the boardroom battle intensifies at Tata Sons, the government may step in to ease the tension. This is as per a CNBC-TV18 report. According to CNBC-TV18, Tata Trusts Chairman Noel Tata and Tata Sons Chairman N. Chandrasekaran are likely to meet with senior government officials.
The meeting comes amid the concerns that the shareholding tussle among the major shareholders at Tata Trusts, which holds a majority stake in Tata Sons, could hamper the functioning of Tata Sons.
Financial Express.com has written to Tata Sons seeking clarification on the news. However, it is yet to receive a response. We will update the story as soon as we receive a response from the Tata Group.
Key issue on table
The report stated that one key point up for discussion in the meeting is to find ways to ensure that the divisions among the trustees of the Tata Trusts are contained and don’t impact the functioning of Tata Sons and the companies under it.
Another important issue that is expected to be discussed is the road ahead for the public listing of Tata Sons, which is required under a regulation introduced by the Reserve Bank of India three years ago.
The division at Tata Trusts
The differences among the trustees of the Tata Trust became apparent a year after the death of Ratan Tata. The key reasons behind the tussle include the appointment of nominated directors on the board of Tata Sons. Another key issue is how much information on board meetings is shared with the rest of the trustees.
The conflict at the Trusts has become a topic of discussion among group executives and other stakeholders. The company has several board positions to fill, as it’s difficult to proceed with the board restructuring before the Trusts make a decision on nominee directors.