Business
Tata Trusts Meeting Turns Contentious Over Nominee Director Appointment At Tata Sons: Report
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The dispute traces back to October 2024, when the trustees appointed Noel Tata as chairman following the demise of Ratan Tata
Tata Trusts
Tempers flared during a meeting of Tata Trusts, as disagreements surfaced over the exercise of a key power—the appointment of a nominee director on the board of Tata Sons—and the broader question of how the charities should exert control over India’s largest diversified business conglomerate, valued at more than Rs 27 lakh crore, The Economic Times reported.
The dispute traces back to October 2024, when the trustees appointed Noel Tata as chairman following the demise of Ratan Tata, the group patriarch. At that time, the trustees resolved that Trust-nominated directors on Tata Sons’ board would require renewal every year after turning 75. This put Vijay Singh, 77, a former defence secretary who has been a nominee director since 2013 and a Tata Trusts trustee since 2018, in line for annual reappointment.
According to the report, four trustees—Mehli Mistry, Pramit Jhaveri, Jehangir Jehangir, and Darius Khambata—opposed Singh’s reappointment. Singh later resigned from Tata Sons’ board. Noel Tata and Venu Srinivasan, also nominee directors, were present at the meeting. Singh did not participate since the agenda involved his own reappointment.
The power to appoint nominees is a crucial lever of influence for Tata Trusts. Under Article 121 of Tata Sons’ Articles of Association, nominee directors hold veto rights over key decisions. Differences deepened when the four opposing trustees sought to nominate Mehli Mistry in Singh’s place. Srinivasan and Noel Tata resisted, arguing that due process aligned with Tata values and institutional stature must be followed.
Officials close to the matter described the attempt as a power grab. “Any decision of such kind needs unanimity,” one senior official told ET. “This hostile manner is not the Tata way of doing things. There is an impasse now, with three trustees against four. For the moment, Tata Sons will have two Trust nominees until a solution is worked out.”
One possible resolution, according to people in the know, is to appoint a professional search firm to shortlist candidates, with trustees also free to apply for the role.
Underlying the tensions is a long-standing friction over information sharing. Tata Trusts—specifically the Sir Ratan Tata Trust and Sir Dorabji Tata Trust—hold 66% of Tata Sons’ equity. Trustees not serving on the board complain of inadequate communication from nominee directors, alleging they are kept in the dark about deliberations. Nominee directors, however, argue they can only share key developments without breaching their fiduciary responsibilities, as board members are bound by market regulator governance norms.
Another related debate concerns whether nominee directors should accept board fees from Tata Sons, since they are meant to act purely as overseers on behalf of the Trusts.
Meanwhile, the Tata Sons board also faces additional vacancies following the exits of Ralph Speth, Ajay Piramal, and Leo Puri, ET added.
Aparna Deb is a Subeditor and writes for the business vertical of News18.com. She has a nose for news that matters. She is inquisitive and curious about things. Among other things, financial markets, economy, a…Read More
Aparna Deb is a Subeditor and writes for the business vertical of News18.com. She has a nose for news that matters. She is inquisitive and curious about things. Among other things, financial markets, economy, a… Read More
September 12, 2025, 08:23 IST
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Budget eases PF, ESI deduction rules for employers, allows relief for delayed deposits – The Times of India
In a move expected to bring relief to employers and reduce routine tax disallowances, the finance bill has proposed a key change to the treatment of employees’ provident fund (PF), ESI and similar contributions, allowing deductions even where there is a delay in deposit, provided the amount is deposited by the employer entity with the relevant welfare fund authorities before the due date of its Income-tax return.At present, employers can claim deduction for employees’ PF and ESI contributions only if the amounts are deposited within the strict timelines prescribed under the respective welfare laws. Even a minor delay permanently disqualifies the expense for tax purposes, a position that had been settled by the Supreme Court (SC) after years of litigationUnder the proposed amendment to Section 29 of the Income-tax Act, 2025, the definition of “due date” for claiming deduction of employees’ contributions is set to be aligned with the due date for filing the income-tax return by the employer entity.Explaining the shift, Deepak Joshi, a SC advocate said employers are currently held to a rigid standard. “The law, as interpreted by the SC, meant that if employee contributions were not deposited within the due date under the relevant welfare fund laws, no deduction was allowed — even if the payment was made before filing the income-tax return,” he said.“The proposed amendment substitutes the definition of ‘due date’ to mean the due date of filing the income-tax return. The positive impact is that even if there is a slight delay in depositing employees’ contributions, so long as the amount is deposited before the return-filing deadline, the employer will be allowed the deduction,” Joshi added. Experts view the move as part of the government’s broader effort to soften compliance rigidities and reduce avoidable litigation.
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Budget eases PF, ESI deduction rules for employers, allows relief for delayed deposits – The Times of India
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