Tata Sons rejects Noel Tata's request for meeting recordings

The request by Tata Sons to obtain audio-video recordings of the 17 September board meeting of Tata Trust Chairman Noel Tata has been officially rejected. According to a report by Business Standard, this was the same meeting in which the decision was taken to reappoint N. Chandrasekaran as the chairman of the Tata Group's holding company. Noel Tata was the sole director opposing this reappointment and had been requesting these recordings through continuous correspondence following the meeting. This development has brought to the surface the disagreements existing at the top level of the Tata Group, between the management of Tata Sons on one side and the company's largest shareholder, Tata Trust, on the other.

In a letter written to Tata Trust on 9 November, Tata Sons Company Secretary Suprakash Mukhopadhyay clarified that the company's tradition has never been to share audio or video recordings of meetings held in person. The letter further stated that video recordings are mandatory only when a director attends online. Additionally, according to company rules, there is no provision to preserve these recordings or share them with anyone, including directors. The letter also mentions that the draft minutes of the meeting were uploaded to the board's app on 1 October and necessary amendments were made following feedback received on 8 October. A copy of the revised minutes will be placed on the app shortly, which directors can discuss in the upcoming meeting.

The primary reasons for Noel Tata's opposition include the issue of the listing of Tata Sons, which is most significant. Noel believes that Chandrasekaran has not made sufficient efforts to avoid listing, while Chandrasekaran maintains that the company must comply with the law following the RBI order. Furthermore, Noel is concerned about the decisions taken in the digital sector, Air India, and the electronics business during Chandrasekaran's tenure and their financial consequences. Earlier this year, the decision on Chandrasekaran's reappointment was deferred due to a lack of consensus. When this issue was raised during the 17 September meeting, Noel opposed it and walked out midway through the meeting. However, within just one hour of the meeting, Tata Sons announced the resolution.

The side of Noel Tata believes that legal clarity under the Articles of Association and approval from shareholders in the Annual General Meeting were necessary for this reappointment. However, Tata Sons' 9 November letter stated that the Registrar of Companies has been informed of this appointment as per Section 117 of the Companies Act. This appointment was taken up under the agenda of the 'Nomination and Remuneration Committee' report. Another nominee director of Tata Trust, Venu Srinivasan, voted in favour of this appointment. The company has also dismissed allegations that a conflict of interest occurred due to business relations between the families of Chandrasekaran and Srinivasan.

Noel Tata is a trustee of Tata Trust and plays an important role in various companies of the Tata Group. He is the half-brother of former Tata Group Chairman Ratan Tata. Tata Sons is the main investment company of the Tata Group, which manages all the companies in the group.