Mehli Mistry dismayed Noel Tata didn’t back him for Tata Sons board amid Trusts’ internal divide

The board assembly of Tata Trusts on September 11 revealed sharp variations over Mehli Mistry’s nomination to the Tata Sons board, exposing underlying tensions amongst India’s oldest philanthropic establishment’s trustees. The minutes of the assembly, reviewed by TOI, present a transparent cut up over whether or not the Trusts wanted a “extra forceful voice” on the Tata Sons board, notably in mild of the corporate’s potential itemizing.

Mistry, a trustee and shut confidant of Ratan Tata, expressed frustration over Noel Tata’s stance, saying he had “constantly supported Noel always, together with when he was being thought of for the chairman’s function” at Tata Sons and was “dismayed” by Noel’s unwillingness to again his board nomination.

The dialogue was triggered by the proposed reappointment of vice-chairman Vijay Singh, 77, as a nominee director on Tata Sons. Whereas a faction of trustees, together with Mistry, Darius Khambata, Pramit Jhaveri, and Jehangir Jehangir, felt Singh must be changed by Mistry to convey a stronger illustration of the Trusts’ perspective, Noel Tata and Venu Srinivasan opposed the transfer, highlighting Singh’s loyalty and previous help for the Tata Group throughout tough instances.

Based on the minutes, Singh had opted to not attend the assembly, citing his choice to remain out of discussions about his reappointment. The Trusts’ pointers, established in October 2024 after Noel turned chairman following Ratan Tata’s dying, mandate an annual overview of nominee administrators as soon as they flip 75.

Khambata, senior counsel and former Maharashtra advocate common, stated the overview “had nothing to do with Singh per se” however was about “existential points confronting the Tata Group,” particularly the itemizing of Tata Sons. He added that Mistry had “no want to affix Tata Sons board” however was deemed the appropriate selection “given the effort and time required within the current circumstances.” Jehangir echoed this view, emphasising that the Trusts wanted a nominee who may extra forcefully convey their views.

Noel Tata countered, pointing to Singh’s steadfast help throughout the group’s authorized and company challenges, doubtless alluding to the Cyrus Mistry episode. He famous Singh had backing from Tata Sons chairman N Chandrasekaran and warned that forcing a director to go away mid-term can be unprecedented. Srinivasan agreed, stressing the necessity for deliberation and consensus to keep away from setting a unfavourable precedent.Jhaveri highlighted rising divisions inside the Trusts since October 2024, citing “a scarcity of transparency” and inadequate communication on key issues. Noel and Srinivasan defended themselves, saying that they had shared data whereas balancing fiduciary duties as Tata Sons administrators. Mistry additionally famous the reappointment of an impartial director on Tata Sons was a shareholder matter that trustees ought to have been knowledgeable about prematurely.Khambata summed up the central challenge: the cut up was not private however about having “a forceful voice on Tata Sons board with regard to itemizing and different necessary issues.” When requested if he supported Mistry’s candidature, Noel Tata responded within the unfavourable, prompting Mistry to precise his dismay over the shortage of help regardless of his previous backing.

The board finally voted in opposition to Singh’s reappointment, with Mistry, Khambata, Jehangir, and Jhaveri in favour of change, and Noel and Srinivasan opposing it. Singh resigned following the vote, leaving the Trusts with a brand new nominee panorama and highlighting a uncommon public glimpse into inner dynamics on the prime of the Tata empire.

With inputs from TOI