Triggered by complaint by Tata Sons Director Venu Srinivasan against Sir Dorabji Tata Trust and Noel Tata to Charity Commissioner, Tata Trusts filed caveats asking body to hear them before giving any order.
George Mathew reports this follows letter written by Srinivasan also trustee of Tata Trusts to Commissioner's office seeking immediate inquiry into administration and governance of SDTT including appointment and continued status of existing perpetual trustees and basis upon which Noel Tata assumed and continues to hold Chairmanship.
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Earlier, Charity Commissioner's office had issued ex parte order restraining Sir Ratan Tata Trust from holding meetings and taking decisions, move that led to postponement of Tata Sons AGM and prevented Tata Trusts from exercising its 66% voting rights in Tata Sons.
SRTT and SDTT together hold over 50% stake in Tata Sons. Yet Charity Commissioner yet to announce decision on complaint filed by Srinivasan and another lawyer against SRTT five months ago.
Srinivasan complaint mainly pertaining to perpetual trustees and other governance matters against SRTT April 28. Trustees are exposing Trust and its charitable corpus to potentially immense fiscal consequences by involving Trust directly in commercial activities which may not be incidental to charitable objects. Such conduct constitutes mismanagement of affairs and property of SDTT and breach of duties.
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Venu said while Noel Tata is perpetual trustee, Srinivasan has three-year tenure making him rebel in ecosystem. Insider says Tata Trusts themselves acting through Chairman and operating team assumed direct role in identifying, negotiating, seeking implementation of substantial commercial transactions concerning Tata Sons. Such activities go materially against charitable objects and tax consequences substantial.
For India's philanthropy, Tata Trusts control shows how charitable trust law intersects with corporate control of $400 bn group.
Tags: #TataTrusts #CharityCommissioner #VenuSrinivasan #NoelTata #SDTT #SRTT #TataSons #CorporateGovernance #TrustLaw #Mumbai