Tata Sons Boardroom Dispute Reaches Tata Trusts as Venu Srinivasan Seeks Probe

A growing dispute within the Tata group has reached the Tata Trusts, with trustee and Tata Sons nominee director Venu Srinivasan seeking an inquiry by the Maharashtra Charity Commissioner into the governance and administration of the Sir Dorabji Tata Trust.

Srinivasan has raised questions over the functioning and composition of the trust and has sought an investigation into several recent decisions. He has also questioned Noel Tata’s position as a perpetual trustee and the appointment of Noel Tata’s son, Neville Tata, to the trust. The request comes amid an ongoing disagreement among trustees over the role of Tata Trusts in Tata Sons and the powers of nominee directors representing the charitable trusts on the company’s board.

Srinivasan has specifically challenged Circular Resolution No. 107 issued by the Sir Dorabji Tata Trust on September 16. He has alleged that the resolution sought to restrict his participation and voting rights on matters relating to the proposed listing of Tata Sons. He has sought a freeze on changes to the trust’s board while the Charity Commissioner considers the matter.

The differences have also spilled over into the Tata Sons boardroom. Srinivasan supported N Chandrasekaran’s reappointment as chairman of Tata Sons and backed moving ahead with the proposed listing. Noel Tata took a different position on these matters, leading to further disagreement within the group.

Srinivasan has also questioned the extent to which Tata Trusts should become involved in Tata Sons’ commercial and strategic decisions. He has raised concerns that greater participation in business matters could potentially conflict with the charitable objectives of the trusts and have tax implications. The Charity Commissioner has been asked to examine the administration and composition of the trust and take appropriate action if violations are established.

The dispute comes at a sensitive time for the Tata group, with differences emerging over the proposed Tata Sons listing, the governance of Tata Trusts and the role of their representatives on the Tata Sons board.