Mistry's exit puts spotlight on October 2024 resolution

LEGAL OPINION IS almost vertically split on Mehli Mistry's argument regarding the interpretation of the October 2024 resolution taken unanimously by Tata Trusts.

- URVI MALVANIA & JYOTSNA BHATNAGAR

While some legal experts agree that the resolution implies that all existing trustees should be reappointed as trustees for life, an equal number suggest that the award of trusteeship for life only applies to those unanimously reappointed.

"It will finally depend on judicial interpretation in this case," a legal expert said.

Experts have also pointed out that in such situations, the provisions in the Trust Deed will be binding, and in this case, it is not clear if the deeds of the respective trusts - mainly the Sir Dorabji Tata Trust and the Sir Ratan Tata Trust which together hold 51% in Tata Sons - have a provision for awarding trusteeship for life.

"In the absence of any such provision, any resolution by the Trustees, even if passed as claimed in the October 2024 meeting, giving life term to Trustees would be contrary to the law and against the fiduciary duties of such Trustees," Gaurav Dani, founding partner, CMS IndusLaw told FE.