MUMBAI: The Sir Dorabji Tata Trust decided at its Thursday board meeting that it cannot jointly nominate a representative with Sir Ratan Tata Trust (SRTT) for Tata Sons’ Aug 18 annual general meeting because of the regulatory ban on SRTT – putting the AGM at risk. Tata Sons has decided to proceed with the AGM regardless and will adjourn the meeting if quorum is not met. SRTT has asked the public charities regulator, which imposed the ban in May, to lift it.Article 86 of Tata Sons’ Articles of Association requires at least five shareholders present, including one representative jointly nominated by SDTT and SRTT. Article 87 allows the meeting to be adjourned if quorum is not met-but the adjourned meeting would still require that joint nominee, and SRTT cannot make such a nomination while under the regulatory ban.
SRTT has been unable to close its accounts and grants worth Rs 400 crore have been held up as a result of the regulator’s action. “Several activities at SRTT have been left in limbo,” said people close to Tata Trusts chairman Noel Tata.The AGM agenda includes adoption of the company’s FY26 financial statements, a dividend declaration, and reappointment of Tata Sons chairman N Chandrasekaran as a director, who retires by rotation. The Trusts rely on dividend income from Tata Sons to fund philanthropic activities, but Tata Sons cannot declare a dividend without joint approval from SRTT and SDTT.SDTT and SRTT approval is also critical for Chandrasekaran: his chairmanship runs until Feb 2027 but is contingent on his remaining a director-if he is not reappointed at the AGM, his chairmanship ends.Under the rules, Tata Sons can extend the AGM to Sept 30 and then seek permission to extend it a further three months, to Dec.Beyond the Tata Sons AGM agenda, the SDTT board also approved its accounts and considered routine philanthropic projects. Tata Education and Development Trust also met on Thursday and discussed grants for low-income communities in Odisha. SRTT will also see a change on its board after trustee Vijay Singh’s tenure ends today; his term lapses while the trust remains under the regulatory ban, and he is not seeking reappointment, the people said.
