Tata Sons Plans AGM Within a Month Amid SRTT Quorum Dispute
Tata Sons plans to reconvene its AGM within a month, but restrictions on Sir Ratan Tata Trust could again create a quorum hurdle and affect N Chandrasekaran’s reappointment.
Tata Sons is planning to reconvene its annual general meeting (AGM) within the next month, but restrictions on the Sir Ratan Tata Trust (SRTT) could again create a quorum hurdle. The company has already received a three-month extension from the Registrar of Companies after its August 18 AGM was deferred due to insufficient quorum.
The upcoming AGM is significant as shareholders will consider N Chandrasekaran’s reappointment as a director of Tata Sons. The issue comes amid reported differences between Tata Trusts chairman Noel Tata and the Tata Sons board over Chandrasekaran’s reappointment and the proposed listing of Tata Sons.
The quorum dispute stems from restrictions imposed on SRTT by the Maharashtra Charity Commissioner, which prevent the trust from holding meetings or taking decisions. SRTT and the Sir Dorabji Tata Trust (SDTT) jointly hold 51.54% of Tata Sons, and their authorised representative is required for quorum under the company’s Articles of Association while the trusts hold at least 40% of the paid-up ordinary share capital.
If the same issue prevents the AGM from being constituted, Tata Sons may approach the National Company Law Tribunal (NCLT) under Section 97(1) of the Companies Act. The tribunal can direct how an AGM should be convened and conducted, although its powers would not override the Charity Commissioner’s restrictions on SRTT.
The possibility of an NCLT-directed meeting could itself invite challenges to the validity of resolutions, leaving the dispute open for further legal proceedings.
