Sharad Pawar, the chief of the Nationalist Congress Party, expressed his concerns on Tuesday regarding the recent decisions made at Tata Sons. He called for the preservation of the Tata Group’s institutional heritage and its philanthropic governance model. Pawar emphasized the importance of respecting the affirmative voting rights of the Tata Trusts in light of these developments.
“Jamshedji Tata and the Tata family gave industry a value-based direction of social service. 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. The NCP (SP) chief highlighted that while Tata Trusts Chairman Noel Tata voted against both proposals, nominee director Venu Srinivasan voted in favour. With only two such directors in attendance, unanimity between both was required, rendering the resolution questionable from the outset.
Therefore, the social commitment and institutional role of the Tata Trusts must be preserved. 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. 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, according to the view of Tata Trusts holding 66 per cent ownership.
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.
