Ahead of the crucial and much-awaited Tata Sons Annual General Meeting (AGM) on August 18, Tata Trusts is learnt to have planned a crucial board meeting on August 13. What are the issues that are likely to be discussed and what could be the road ahead for both Tata Trusts and Tata Sons-all these factors have explained below.

Governance

One of the key agendas of the meeting is likely to be the state of governance in Tata Trusts and Tata Sons. Industry experts believe a significant concern in recent times has been who should exercise influence over Tata Sons and just how much influence should that be. Currently, Tata Trusts owns around 66 percent of Tata Sons, this therefore gives them significant influence over the holding company of the Tata Group. The concern has been whether Tata Trusts and Tata Sons have been aligned on certain strategic decisions at all or whether their vision for the Tata Group going forward is likely to be broadly aligned.

833 Tata Sons Shares Transfer Row

The Maharashtra Charity Commissioner is likely to examine an external legal opinion questioning the validity of the alleged transfer of 833 Tata Sons shares in 1989. The shares were allegedly transferred from the Navajbai Ratan Tata Trust to the late Naval H Tata, raising questions over compliance with trust regulations and governance procedures. The notice earlier issued by the Charity Commissioner’s office sought clarity from Noel Tata on the circumstances surrounding the transaction, the rationale behind the transfer, and the decisions taken by trustees at the time. The matter is sensitive because the disputed shares are now linked to the Tata family’s ownership interests, making the Charity Commissioner’s assessment relevant not only as far as the transaction is concerned but also regarding questions around governance and handling of charitable trust assets.

Renewal of N Chandrasekaran’s Term

Tata Trusts board is expected to also discuss their view on the renewal of Tata Sons Chairman N Chandrasekaran’s term as a director on the board of the company. N Chandrasekaran joined the Tata Sons board in October 2016 and is due to retire by rotation.

Tata Sons’ Listing Or Not

Tata Sons’ listing on the stock exchanges or not also remains a key issue. Tata Sons is the principal investment holding company and promoter of the Tata Group. Reports suggest some key leaders have opposed a listing while some others have supported it. This debate centres around control, capital, transparency and the long-term structure and vision for the Tata Group.