Tata Trusts strife bares a void

Today's meeting may set the tone for the philanthropic entities' future, a year after the death of Ratan Tata

- Varun Sood & Satish John

During late Ratan Tata's time, the Tata Sons articles of association was amended to include the separation of its leadership from Tata Trusts.

(PT)

The divided trustees of Tata Trusts meet in Mumbai on Friday, a year and a day after former chairman Ratan Tata’s death, in the backdrop of a void that the conglomerate still struggles to fill.

The discord at the Trusts spotlights Tata’s unquestioned authority during his tenure, as well as the consequences of his decision to prevent a potential centralization of powers.

Friday's meeting will be the first since the acrimony at Tata Trusts surfaced. It may also set the tone for the philanthropic entities’ future, especially after the Trusts broke tradition by removing one trustee from the Tata Sons board. Details of their displeasure and the removal were first reported by Mint on 24 September.

Tata's decision to split the leadership of the Trusts and the operating company Tata Sons aimed to prevent any single person from wielding overwhelming authority. The separation of powers would also prevent the fracturing of the Tata legacy and ensure that profits from the businesses go to philanthropy, not personal luxury and spoils.

Unintentionally, the decision has sparked a tussle at the Trusts, not long after Tata’s passing. At stake is the direction and decision-making at the $300 billion Tata Sons, which is trying hard to stay private, and negotiate an exit for the Shapoorji Pallonji Group, its single largest individual shareholder.