One key reason for Cyrus Mistry’s sacking was the displeasure of Tata Trusts in not receiving enough dividends on their shares. On Tuesday, V.R. Mehta, trustee at the Sir Dorabji Tata Trust, which holds a 27.98% stake in Tata Sons, said as much in an interview to NDTV.
However, a look at Tata Sons’s filings with the Registrar of Companies shows that the firm’s dividend distribution has been steady. It distributed Rs 283 crore as dividends to ordinary shareholders in each of the fiscal years from 2008 to 2010. From fiscal 2011 to fiscal 2016, the dividend paid has been Rs 323 crore, except for one year. In fiscal 2015, Tata Sons gave out Rs 647 crore to shareholders because of a special dividend received from Tata Consultancy Services Ltd (TCS), where it holds close to 73.5%.