• Wednesday, October 05, 2022

Business

Split in Tata? Shareholders may poll on splitting chairs at Tata Sons, Tata Trusts, says report

Ratan Tata (Photo by John Parra/Getty Images for Pritzker Architecture Prize)

By: Shubham Ghosh

Tata Sons shareholders are eyeing a separation of posts of the chairman of Tata Trusts and Tata Sons soon, Business Standard reported on Wednesday (17).

They are expected to hold a voting on the new articles of association. As per the Tata Sons annual general meeting notice, the Standard report said, the voting will take place on August 30.

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Tata Trusts reportedly owns a majority stake in Tata Sons, the holding company of the Tata conglomerate worth $103 billion.

Currently, both the trusts that have a combined shareholding of nearly 52 per cent in Tata Sons, are headed by Ratan Tata, the group’s chairman emeritus.

India Weekly could not independently verify these reports.

Tata held the position of the chairman of the trusts since the mid-1990s. He was the last man to be the chairman of both Tata Sons and Tata Trusts after the legendary JRD Tata. N Chandrasekaran, the current Tata Sons chairman, is likely to become the chairman of either of the two bodies only after the 84-year-old Tata calls it a day.

ET Now reported that the idea behind the proposal to split the chairmanship of the two trusts appears to be to grow corporate governance within the group and avoid concentration of power.

In February, market regulator Securities and Exchange Board of India had changed the requirement for listed firms to separate posts of chairperson and managing director or chief executive officer from mandatory to voluntary.

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