Ratan Tata to step down from Tata Trusts
Tata group patriarch and current interim chairman of Tata Sons, Ratan Tata, plans to step down from the board of Tata Trusts, once a new chairman for Tata Sons is appointed.business Updated: Dec 16, 2016 11:31 IST
Tata group patriarch and current interim chairman of Tata Sons, Ratan Tata, plans to step down from the board of Tata Trusts, once a new chairman for Tata Sons is appointed.
Tata Trusts owns 66% of the equity shareholding of Tata Sons, the holding company for the group. Although Ratan Tata is the interim chairman for the group, he continues to head Tata Trusts, the principal shareholder of Tata Sons.
A Tata Sons spokesperson confirmed the development.
On Oct 24, Tata Sons, while removing Cyrus Mistry as chairman, had formed a selection panel to look for a new successor at the holding company. The panel has been mandated to appoint a chairman by the end of February.
According to group sources, Tata’s plans are in line with the conglomerate’s efforts to ensure that there are no charges of backdoor control of Tata Sons, through the Trusts. “Mr Tata is these days more keen on promoting start-ups and has no such intentions,” they said.
Ousted chairman Mistry, who has been strongly contesting his removal, has indicated that Tata Trusts influences the decisions taken by Tata Sons and also that of the operating companies of the group.
This has been the focal point of Mistry’s recent representations to the Tata Sons board and to shareholders of group companies, that are scheduled to hold extraordinary general meetings to vote on the Tata Sons proposal to remove Mistry as director.
Group companies TCS, Tata Industries and Tata Teleservices have already voted out Mistry as director at their EGMs. Similar shareholder meetings of key group companies such as Tata Steel, Tata Motors are scheduled next week.