A meeting of the Sir Dorabji Tata Trust on Monday steered clear of the contentious governance and regulatory issues confronting the Tata Group, focusing instead on routine business despite growing scrutiny of the Tata Trusts ecosystem.
According to those aware of the deliberations, the meeting did not take up several sensitive subjects currently hanging over the Tata Group. These include Tata Sons’ potential listing amid growing regulatory pressure, the performance of newer loss-making ventures, the position of Tata Trusts vice-chairman Venu Srinivasan within the trusts structure, and the future tenure of Tata Sons chairman N Chandrasekaran.
The limited agenda was not entirely unexpected. With the Sir Ratan Tata Trust (SRTT) — the largest shareholder among the Tata Trusts with nearly 24% of Tata Sons — unable to hold meetings following a directive from the Maharashtra Charity Commissioner, significant decisions on matters such as Tata Sons’ listing and broader governance issues were unlikely.
The meeting comes ahead of a crucial Tata Sons board meeting on June 12, where several strategic and governance issues are expected to come under discussion. Among them is a review of presentations made by the chief executives of Air India, Tata Electronics and Tata Digital to Tata Trusts trustees on May 26. The presentations are understood to have outlined the performance, strategy and three-year roadmaps of the businesses. Air India and Tata Digital, in particular, remain under scrutiny as the group seeks to improve performance at ventures that continue to require substantial capital support.
Other issues expected to feature in upcoming discussions include Tata Sons’ potential listing, Chandrasekaran’s future tenure, Srinivasan’s role within the trusts structure, and the representation of Tata Trusts through nominee directors on the Tata Sons board.
Monday’s meeting also took place against the backdrop of a fresh complaint before the Maharashtra Charity Commissioner seeking an inquiry into the transfer of 833 Tata Sons shares from the Navajbai Ratan Tata Trust (NRTT) to the late Naval H. Tata in 1989.
Tata Trusts has rejected the allegations, maintaining that the transaction was lawful, undertaken for consideration and fully compliant with the rules prevailing at the time. The Trusts have also questioned the petitioner’s locus standi and indicated that they will pursue legal remedies to protect their reputation.
