"Necessary to preserve legacy of 'Tata Group'": Sharad Pawar raises concerns over Tata Sons governance, calls for respecting Tata Trusts' role

Nationalist Congress Party (SP) chief Sharad Pawar on Tuesday called for safeguarding the institutional heritage and philanthropic governance model of the Tata Group, expressing concerns over recent board-level decisions at Tata Sons and emphasising that the affirmative voting rights of Tata Trusts must be respected.

Nationalist Congress Party (SP) chief Sharad Pawar on Tuesday called for safeguarding the institutional heritage and philanthropic governance model of the Tata Group, expressing concerns over recent board-level decisions at Tata Sons and emphasising that the affirmative voting rights of Tata Trusts must be respected. Taking to social media platform X alongside an image shared in Marathi titled "Preserving the Tata Group's Legacy is the Need of the Hour," Pawar stated that Jamshedji Tata and the Tata family steered Indian industry with a deep commitment to societal welfare, making the preservation of Tata Trusts' statutory role essential.

"Jamshedji Tata and the Tata family gave industry a value-based direction of social service. Therefore, the social commitment and institutional role of the Tata Trusts must be preserved. When decisions are made regarding the leadership of the Tata Group, it is essential to respect the institutional processes and the role of the Trusts. Because it is necessary to preserve the legacy of the 'Tata Group,' which is continuously connected not only to the development of Maharashtra but also to the nation's progress and societal life," Pawar said. In the image attached in his post, the veteran leader pointed out that philanthropic trusts, including the Sir Ratan Tata Trust and the Sir Dorabji Tata Trust, hold approximately 66 per cent of equity in Tata Sons. This unique ownership model, he noted, ensures that corporate dividends directly fund vital national institutions based in Maharashtra, such as the Tata Memorial Hospital, the Tata Institute of Fundamental Research (TIFR), the Tata Institute of Social Sciences (TISS), and the National Centre for the Performing Arts (NCPA).

Highlighting a recent board meeting on September 17, where Tata Sons decided by a 4-1 majority to reappoint N Chandrasekaran as Executive Chairman for another five-year term beginning in February and initiated steps toward a potential public listing of Tata Sons, Pawar flagged governance anomalies. The NCP (SP) chief highlighted that while Tata Trusts Chairman Noel Tata voted against both proposals, nominee director Venu Srinivasan voted in favour. According to the view of Tata Trusts holding 66 per cent ownership, Pawar pointed out that under the company's Articles of Association, any appointment of the Chairman requires the affirmative consent of a majority of trust-nominated directors present. With only two such directors in attendance, unanimity between both was required, rendering the resolution questionable from the outset.

Pawar emphasised that corporate governance norms demand strict adherence to company bylaws, noting that the Supreme Court had previously recognised the affirmative voting rights vested in trust-nominated directors to protect stakeholder interests. He further urged preserving the institutional integrity and value-based legacy of the group, which has dedicated itself to the development of India, as it is our collective responsibility. (ANI)