IT Correspondent
Mumbai, July 22:
Tata Sons’ Chairman Emeritus Rata Tata in his submission before the Supreme Court has stated that although he happens to be the current chairman of the Tata trusts, but in future it could be somebody else and the person may not have the surname ‘Tata’.
In response to a petition fled by Cyprus Mistry, representing “Cyrus Investments Pvt Ltd” (CIPL), claiming that the “Tata Sons Pvt Ltd”(TSPL) “,the holding company was a ‘quasi-partnership’ between the “Tata” and “Mistry” and the mistry family has 18.37 per cent stake in the TSPL, Ratan Tata said that, TSPL was never intended to be and is not a two-group company and there is certainly no quasi-partnership between CIPL and “Tata Group”.
Modi in an affidavit has sought removal of certain anomalies in NCLAT order for getting representation on the TSPL’s board in proportion to the stake held by his family. In response, Ratan Tata, mentioned that other group companies, which cumulatively hold close to 13% stake in “Tata Sons”, do not have any special rights. Therefore, it is not the case of the Mistry group being singled out with regard to the denial of any rights.
Tata stated, “This is by choice, and not by accident. As early as 1919 and 1932, the founding members consciously endowed their wealth and shareholding in “Tata Sons” to charitable trusts with a vision to create an enduring legacy and institution which would become — and that has become — a benchmark for business excellence.”
So far as the members of the Tata family (descendants/relatives of founders) are concerned, no special right or role has ever been stipulated or given to them in the company (Tata Sons), or its management, apart from the rights that they would have under law as a shareholder. ”Their shareholding itself shows that the structure of the Tata Group is delinked from the family. He and his relatives have less than 3% stake in Tata Sons. Members of the Tata family have no “vested right” to that position or even to the chairmanship of Tata Sons.”
It is worth mentioning that Ratan Tata was the only chairman of both “Tata Sons” and “Tata Trusts”. In response to a plea filed by Mistry, Tata said the current chairman of Tata Sons, N Chandrasekaran, is also not from the family.
The octogenarian is believed to be evaluating plans to institutionalise the management of Tata Trusts with an eye on the future. He could seek to form a committee of high-ranking individuals from various fields, especially (with a background) in philanthropy and humanities.
Ratan Tata ended his active association with Tata Sons in December 2012 when he stepped down as Chairman of Tata Sons after 50 years at the helm and was appointed Chairman Emeritus of Tata Sons. He continues to serve as Tata Trust chairman.
