Fri. Mar 29th, 2024
Tata Sons

Tata Sons, the holding entity of the companies under Tata Group, is set to become a private entity after its shareholders approved the move with a sound majority. According to sources close to the development, the move was opposed by the family of Cyrus Mistry, former Chairman Tata Sons. Cyrus Mistry’s family owns a minority stake in Tata Sons and after getting a shape of a private limited, Shapoorji Pallonji group, headed by Mistry, will need board’s approval to sell their minority stake in the company.

Some other developments from the board meeting included an amendment in the memorandum of association. The latest amendments will provide more flexibility in the functioning of the new company as well as in the process of appointing new directors, including women on the board of directors list. The updates MoA also states that at any given point, the strength of independent directors should be at least one-third of the total number of directors. Also, if an independent director is not in the country, there is a provision of appointing an alternate director to the board.

An important amendment regarding the strength of board included that the minimum number of directors on board should be increased to five from the existing number of 3. Also, the number of maximum directors at any point of time remains 15. Tata Sons is also looking to raise INR 45,000 Crores against non-convertible debentures and the same was approved at the board meeting. One of the most important resolutions, which was passed in the board meeting, included the appointment of a chief financial officer.

By Prithviraj Singh Chauhan

Part time journalist, full-time observer. Editor-in-Chief at The Indian Wire. I cover updates related to business and startups.