The boards of Tata Trusts and Tata Sons will meet on Wednesday and Thursday to assess a report acknowledging disclosure lapses by Tata Sons company secretary, Suprakash Mukhopadhyay, stated a report by Times of India. The lapses are related to his association with Divinion Advisory Services, a wealth management firm owned by his family.
The report was commissioned by Tata Sons chairman N Chandrasekaran following concerns that Mukhopadhyay’s connection to Divinion might present a conflict of interest with his duties within the Tata group.
“I have complete faith and confidence in Chandra, the chairman of Tata Sons, to respond and handle such matters appropriately, as he deems fit and proper,” Mehli Mistry, Executive Trustee at Tata Trusts, told The Times of India.
The report was compiled by three Tata Sons executives who stated that Mukhopadhyay’s actions do not appear to be an intentional breach of Tata’s code of conduct. However, it went on to highlight that Mukhopadhyay failed to disclose his role in assisting Divinion in seeking investments from former Tata employees and external contacts linked to Tata Sons.
According to Tata’s code of conduct, a conflict of interest exists when an employee secures improper benefits for themselves or their family. Discovered later, it can lead to disciplinary measures. For listed entities, SEBI may impose penalties for such lapses.
The TOI further maintained that the report was shared with all Tata Sons board members even although this is an internal Tata Sons matter. It is unclear if all directors have accepted the verdict of “no intentional breach”.
Divinion Advisory Services was established in December 2020 and now manages assets worth over Rs 90 crore.