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Tata Sons meets September 17 as trustees split on listing
Livemint··14 Sept
Tata Sons will hold a board meeting on September 17, the first since chairman N Chandrasekaran said he would leave in February, Mint reported. Tata Trusts owns 65.9% and its nominees can veto capital changes a listing would require. Chair Noel Tata wants the company private while vice chairman Venu Srinivasan now backs an IPO after an RBI order.
Prism
What It Means For You
- Any Tata Sons listing would need affirmative votes from both Tata Trust nominees on the six-member board.
- Trust veto rights also cover investments above Rs 100 crore and debt beyond twice net worth, the articles say.
- Sir Dorabji Tata Trust holds 27.98% of Tata Sons, with deadlock blocking a fresh capital resolution.
What's Happening
- Chandrasekaran heads a board that includes Noel Tata, Srinivasan, CFO Saurabh Agrawal and two independents.
- Sir Ratan Tata Trust could not appoint a director with SDTT in August, leaving a quorum short at the AGM.
- A July 28 Sir Ratan Tata Trust resolution urged keeping Tata Sons unlisted and engaging the RBI.
Tata Trusts veto mechanics
- Articles 121A classify share issuance and Trust dilution as matters needing both nominees' approval.
- SDTT began a chairman search panel after accepting Chandrasekaran's departure plan on August 13.
- A group executive said Tata Trusts may instruct the board to keep the company private and could litigate.
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