Industry Odisha Bureau, Aug 18: Tata Sons’ Annual General Meeting (AGM), scheduled for today, August 18, could face a hurdle if the company fails to meet the required quorum. Efforts are underway to ensure the meeting goes ahead as planned.
The issue is linked to the Sir Ratan Tata Trust (SRTT), which owns a 23.56% stake in Tata Sons. At least five members must be personally present for an AGM to have a valid quorum. This comes under the Tata Sons’ Articles of Association. The rules also require an authorised representative jointly nominated by the Sir Dorabji Tata Trust and SRTT.
However, the SRTT has been unable to hold a board meeting following an order issued by the Maharashtra Charity Commissioner in May. The order came amid an inquiry into the composition of the trust’s board.
This has created a problem for Tata Sons, as the SRTT cannot currently complete the process of jointly nominating a representative with the Sir Dorabji Tata Trust. IF the quorum requirement is not met, the AGM could be adjourned.
The meeting is important for shareholders as it is expected to formally approve Tata Sons’ declared dividend. The AGM will also consider the reappointment of Chairman N Chandrasekaran as a director.
The SRTT board issue centres on its lifetime trustees. According to a petition before the Charity Commissioner, three of its six trustees are lifetime trustees. These include Jimmy Naval Tata, Jehangir HC, and Noel Naval Tata. The petition also claims they account for 50% of the board, exceeding the 25% limit under the amended Maharashtra Public Trusts Act.
