Tata Trusts Meet, But Srinivasan's Future on Tata Sons Board Remains Unresolved

Trustees of key Tata Trusts, including Sir Dorabji Tata Trust (SDTT) and Tata Education and Development Trust, met on Monday, June 8, four days before the Tata Sons board meeting scheduled for June 12.

Sir Ratan Tata Trust (SRTT), however, did not hold a meeting, as it continues to be subject to proceedings before the Maharashtra Charity Commissioner arising from complaints relating to the number of lifetime trustees, according to a Moneycontrol report.

The Srinivasan Question

A key contentious issue — trustee Venu Srinivasan's continuation as a nominee director on the Tata Sons board — was not discussed at Monday's meetings, the report added. The issue did not come up because SRTT, of which Srinivasan is also a trustee, did not meet.

The matter is important because Tata Trusts' nominees on the Tata Sons board are central to the holding company's governance structure. All key decisions must be approved by a majority of directors nominated by the Tata Trusts. Currently, Tata Trusts Chairman Noel Tata and Srinivasan represent the trusts on the Tata Sons board.

Moneycontrol had earlier reported that Noel Tata was in favour of replacing Srinivasan with Bhaskar Bhat, former Managing Director of Titan and a trustee of SDTT. However, the legal proceedings surrounding SRTT have complicated this move. Notably, Srinivasan himself is one of the complainants to the Charity Commissioner, alleging that SRTT's board should have one lifetime trustee instead of the current three.

Fault Lines within the Trusts

Monday's meetings also come at a time when differences within sections of the trusts have sharpened over key governance issues, including the possible listing of Tata Sons and whether Tata Sons Chairman N Chandrasekaran would get a third term. While Noel Tata opposes listing the holding company, Srinivasan and another trustee, former bureaucrat Vijay Singh, have supported it.

The meetings also followed Tata Trusts publicly rejecting allegations made in a fresh complaint to the Maharashtra Charity Commissioner regarding the transfer of 833 Tata Sons shares to the late Naval Tata from the Navajbai Ratan Tata Trust in 1989. The trusts described the allegations as baseless, malicious, and an attempt to damage the reputation of the institution and the Tata family. Naval Tata was the father of the late Ratan Tata, Jimmy Tata, and Noel Tata.

At the Tata Sons board meeting on June 12, issues including Chandrasekaran's possible third term, the listing of Tata Sons, and the future direction of long-gestation businesses — Tata Digital, Air India, and Tata Electronics — are expected to be discussed. Trustees may also review these businesses ahead of the meeting, all of which continue to require substantial capital commitments.

Air India remains the largest loss-making unlisted company within the Tata Group. Tata Electronics is central to the group's semiconductor and electronics manufacturing ambitions. Tata Digital, which houses Tata Neu, BigBasket, Tata Cliq and Tata 1mg, operates in highly competitive markets. These businesses were also reportedly discussed at a previous Tata Sons board meeting on May 26, where executives briefed directors on performance, investment requirements and profitability timelines.