Tata Sons Amends Articles Of Association To Have Separate Chairpersons For Company
Ratan Tata, is the last person who chairs the Tata Trusts and also held the position of Tata Sons chairman till 2012
The shareholders of Tata Sons, on Tuesday, at the annual general meeting, cleared a significant amendment to the articles of association related to the leadership roles. As per the amendment, Tata Sons and Tata Trusts, which own 66 per cent of the group, must have separate chairmen.
Ratan Tata, is the last person who chairs the Tata Trusts and also held the position of Tata Sons chairman till 2012. At present, N. Chandrasekaran is the chairman of Tata Sons, who took charge in February 2017.
Under the amended article of association, a candidate for chairman of Tata Sons would need affirmative vote of all the directors of the company, while a selection panel would be formed to recommend for the appointment of the new chairman and also removal of the incumbent.
Hence, the shareholders who were at the AGM approved the reappointments of Ajay Piramal and Venu Srinivasan as directors of Tata Sons along with the appointment of Anita George as independent director.
As per reports from close sources, the Mistry Family, which owns 18.5 per cent of Tata Sons, had opposed the appointment of Piramal and Srinivasan, but the resolutions were cleared.
According to AoA, for the purpose of selecting a new chairman of Tata Sons, a selection committee will be formed to recommend the appointment of a person as the chairman of Tata Sons. The Tata Sons board may appoint the person as the chairman of the board of directors, subject to Article 21, which requires affirmative vote of all directors. The same process will now be followed for the removal of a chairman.