Ratan Tata’s Confidant, Mehli Mistry Dismayed As Noel Tata Didn’t Back Him As Tata Sons Director : Report

During a recent board meeting of Tata Trusts, differences among trustees became evident, particularly concerning Mehli Mistry's nomination to the Tata Sons board. The minutes of the meeting highlighted these issues, reported Times of India. Mistry, a trustee and confidant of Ratan Tata, expressed disappointment over Noel Tata's reluctance to support him for the board position, reported TOI.

The discussion also touched on the reappointment of Vijay Singh as vice chairman and nominee director on Tata Sons' board. Some trustees suggested replacing Singh with Mistry to better represent the Trusts' views. Despite this suggestion, Noel Tata and Venu Srinivasan supported Singh, citing his loyalty during challenging times for the group.

Trustees' Divergent Views

According to Darius Khambata, a senior counsel and former advocate general of Maharashtra, the review was not personal against Singh but related to broader issues facing Tata Group. He noted concerns about listing Tata Sons and emphasised the need for a stronger voice on its board. Khambata mentioned that four trustees believed Mistry was suitable for this role.

Jehangir Jehangir agreed with Khambata, stating that given the current circumstances surrounding Tata Group, especially with the potential listing of Tata Sons, a change in nominee directorship was necessary. This would ensure that Tata Trusts' perspectives were more effectively communicated on the board.

Support for Vijay Singh

Noel Tata argued that Singh had been supportive during difficult periods in history, likely referencing legal battles involving Cyrus Mistry. Noel added that Singh had full backing from N Chandrasekaran, chairman of Tata Sons. He felt it was unprecedented to ask a nominee director to leave before their term ended.

Venu Srinivasan echoed Noel's sentiments, suggesting more time should have been given before making such decisions. He warned that this could set an undesirable precedent within Trusts and create an impression of internal divisions.

Internal Divisions

Pramit Jhaveri pointed out existing divisions within Trusts since October 2024. He noted some trustees felt distressed due to a lack of transparency in decision-making processes. Jhaveri urged Noel and Srinivasan to reflect on why some trustees felt alienated.

Noel and Srinivasan responded by stating they had shared information except once before. They explained their dual responsibilities as directors on Tata Sons' board and as trustees required balancing fiduciary duties.

Mistry's Proposal

Mistry highlighted an independent director's reappointment issue on Tata Sons' board as a shareholders' matter needing prior trustee notification. Khambata remarked there seemed to be two classes within Trusts: nominee directors and others.

Khambata reiterated respect for Singh but stressed having a strong voice on important matters like listing was crucial. When asked if he supported Mistry's candidacy for the board, Noel replied negatively without elaborating further.

Mistry expressed dismay at Noel's stance despite his past support when Noel was considered for chairmanship roles. Since Mistry's proposal wasn't a resolution requiring voting, it didn't proceed further.

Outcome of Voting

The Trusts eventually voted on Singh's directorship role. Mistry, Khambata, Jehangir, and Jhaveri favoured change while Noel and Srinivasan opposed it. Following majority opposition to his reappointment, Singh resigned from the Tata Sons board.