New Delhi, Aug. 17 -- Tata Sons' Annual General Meeting (AGM), scheduled for Tuesday, August 18, is likely to be adjourned as Sir Ratan Tata Trust (SRTT), a key shareholder, is unable to nominate a representative due to a regulatory restriction imposed by the Maharashtra Charity Commissioner, people familiar with the matter said.
The AGM is scheduled to consider, among other matters, the directorship of Tata Sons Chairman N Chandrasekaran, who has decided not to seek another term after his current tenure ends in February.
It will also consider the company's FY26 financial statements and dividend declaration.
Tata Sons is expected to proceed with the meeting but adjourn it if the required quorum is not met.
Under Article 86 of its Articles of Association, at least five members must be present, including a representative jointly nominated by SRTT and Sir Dorabji Tata Trust (SDTT), provided the two trusts together hold at least 40 per cent of Tata Sons. SRTT holds 23.56 per cent and SDTT 27.98 per cent.
The issue stems from a May order by the Maharashtra Charity Commissioner directing SRTT to defer a trustee meeting and ordering an inquiry into the composition of its board.
SRTT has six trustees, including three lifetime trustees-Jimmy Naval Tata, Jehangir HC Jehangir and Noel Naval Tata-constituting 50 per cent of the board, against the 25 per cent ceiling under Section 30A(2) of the Maharashtra Public Trusts Act.
Tata Trusts has argued that the amendment is prospective and does not apply to perpetual trustee appointments made before September 1, 2025. If the AGM is adjourned for want of quorum, Chandrasekaran would remain a director until a valid AGM is held, people said.
Published by HT Digital Content Services with permission from Millennium Post.