Tata Sons shareholders have approved a resolution to have separate chairpersons for the company and its largest shareholder — Tata Trusts.
An amendment to the articles of association (AoA) of Tata Sons, which sought to prevent a single person heading Tata Sons as well as Tata Trusts simultaneously, was passed at the company’s annual general meeting (AGM) held on Tuesday.
With the special resolution being passed with requisite majority of 75 per cent at the AGM, it will now be legally binding for Tata Sons and Tata Trusts to have separate chairpersons.
Tata Trusts chairperson will not be eligible for appointment as Tata Sons chairman henceforth, people aware of the development said.
When reached out for comments, a Tata Sons spokesperson declined to comment.
Tata Sons is the principal holding company and promoter of Tata group companies with 66 per cent of its equity share capital held by Tata Trusts.
Tata Trusts Chairman Ratan Tata is the last person to be the chairman of both Tata Sons and Tata Trusts, although the positions have remained separate since he retired in December 2012, as chairman of Tata Sons and was succeeded by Cyrus Mistry.
At present, N Chandrasekaran is the Chairman of Tata Sons. He took charge in February 2017, for a five-year term and was reappointed for another five years in February this year.
Under the amended article of association, a candidate for chairman of Tata Sons would need affirmative vote of all the directors of the company, while a selection panel would be formed to recommend appointment of a new chairman and also removal of the incumbent.
The shareholders at the AGM also approved the reappointments of Ajay Piramal and Venu Srinvasan as directors of Tata Sons, along with the appointment of Anita George as independent director. PTI RKL DRR
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