Tata Trusts Proposes Reappointment of Mehli Mistry as Lifetime Trustee

Days before Mehli Mistry’s three-year tenure is to get over, Tata Trusts has suggested re-appointing him as a lifetime trustee, according to a PTI report on 23 October. On October 28, Mistry’s tenure at the Sir Dorabji Tata Trust and Sir Ratan Tata Trust, the two main trusts that own the majority of Tata Sons, comes to an end. The reappointment attempt coincides with rumours of a split among the trustees over their terms, with some allegedly siding with Mistry, who is perceived as a loyalist to Ratan Tata, and others with Noel Tata, who took over as chairman following the latter’s passing.

Mistry’s Connection with Shapoorji Pallonji family

Additionally, Mistry is linked to the Shapoorji Pallonji family, who own about 18% of Tata Sons, the holding company of the software-to-salt conglomerate. The plan comes after business magnate Venu Srinivasan was named a lifetime trustee earlier this week.

Srinivasan’s reappointment as trustee and vice-chairman of Tata Trusts was approved by Mistry and three other trustees, Pramit Jhaveri, Jehangir HC Jehangir, and Darius Khambata, according to PTI, which cited sources. However, under the condition that all future trustee renewals be approved unanimously, failing which their approvals would be withdrawn.

The demand from the Mistry camp reveals a disagreement among trustees on how to interpret the lifetime trusteeship resolution that was adopted following Ratan Tata’s passing last year. According to a Business Standard report, one party contends that lifelong trusteeship ought to happen automatically at the conclusion of a trustee’s term, while another group feels that a trustee’s tenure must be extended before obtaining lifetime status.

The Resolution of Lifetime Membership

According to the resolution authorising lifetime trusteeship, a trustee will be reappointed by the relevant trust upon the expiration of their term, with no time limit on the reappointment, in compliance with the law, a source told Business Standard. As Tata Trusts manages leadership changes in the wake of Ratan Tata’s death, the problem highlights a broader discussion about governance, continuity, and legacy inside the organisation.

The Sir Dorabji Tata Trust and the Sir Ratan Tata Trust are two of the charitable trusts that are under the management of Tata Trusts. Additionally, the organisation owns a 66% share in Tata Sons, the primary holding company that owns stock in every Tata Group company.

The report states that the original meeting, which took place on October 17, 2024, decided that a trustee’s term should be extended by the trust in question, with no time limit on this appointment.

A trustee would violate the commitment and be unfit to serve at “Tata Trusts by such conduct,” according to the report, if they decide to vote against this resolution.