Sir Dorabji Tata and Allied Trusts

Across the ocean, corporate governance battles are reshaping the largest business house of India.

The Sir Dorabji Tata Trust has firmly backed Noel Tata regarding the restructuring of Tata Sons.

This stance follows a decision by the Reserve Bank of India to retain the holding company in the upper-layer non-banking financial company category.

The proposed merger involves Tata Consulting Engineers and Tata Electronics Systems Solutions to keep the entity private and avoid a public listing.

And in this case, would we know what the trust deed contains?

Yes, as I told you, these are two trusts, Sir Ratan Tata Trust and Dorabji Tata Trust, together hold sixty-six percent.

Now, in both these trustees, it has been said that if you want to appoint the chairman or CEO of Tata Sons, in which the trusts have sixty-six percent shareholding, then it must be done only with the approval of the nominee of the trusts who are sitting on the Tata Sons board.

So in this case, Noel Tata, nominee of Ratan Tata Trust, objected to Mr. Chandrasekaran's appointment being extended by another five years.