Vijay Singh To Exit Sir Ratan Tata Trust In August, Internal Differences & Legal Issues Cast Shadow

Mumbai: Vijay Singh, vice-chairman of Tata Trusts, will step down as a trustee of the Sir Ratan Tata Trust (SRTT) on August 14 after his current term ends, according to The Economic Times. The development comes amid internal differences and regulatory scrutiny involving the trusts.

No Renewal

Singh, 78, has decided not to seek another term. He said the changed atmosphere within the trusts after Ratan Tata’s death had been worrying and had raised questions about their future.

He added that he did not wish to continue at his present age or seek renewal in any other trust after completing his existing terms.

However, Singh will remain a trustee of the Sir Dorabji Tata Trust for another year.

Internal Differences

His decision follows several developments that have highlighted differences among Tata Trusts trustees. Tata Trusts owns 66% of Tata Sons, the main holding company of the Tata Group.

In May, Singh and fellow vice-chairman Venu Srinivasan stepped down from the Tata Education and Development Trust after trustee Mehli Mistry opposed their reappointments.

Mistry had also questioned their eligibility to serve as trustees of the Bai Hirabai Jamsetji Tata Navsari Charitable Institution. He cited requirements under its 1923 trust deed relating to religion and permanent residence in Mumbai.

Listing Debate

Singh was reportedly unlikely to receive unanimous support for another SRTT term following his public comments supporting the possible listing of Tata Sons.

His remarks differed from the position reportedly favoured by Tata Trusts chairman Noel N Tata, who supports keeping Tata Sons privately held.

Singh was not reappointed to the Tata Sons board last year.

Meetings Delayed

SRTT has been unable to hold board meetings after the Maharashtra charity commissioner restricted meetings pending a ruling on a complaint concerning perpetual trustees and related matters.

Meetings scheduled in May to review Tata Trusts’ representation and nominee directors on the Tata Sons board were also postponed because of continuing legal proceedings.

SRTT and the Sir Dorabji Tata Trust together control most of Tata Trusts’ holding in Tata Sons. Singh’s departure will therefore come during an important period for the group’s ownership and governance framework.