BackRatan Tata calls employees custodians of the Tata Trusts
Tata seen as sending message that bruising battle with Cyrus Mistry is behind the group
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Mumbai: It is business as usual for the Tata group and Tata Trusts—that seemed to be the underlying message from Ratan Tata to group employees on the 178th birth anniversary of Jamsetji Nusserwanji Tata, which is celebrated as founder’s day at the conglomerate.
The letter, from the chairman emeritus of Tata Sons Ltd and the chairman of the Tata Trusts, seeks to reassure employees at a time the group is recovering from a bruising battle with ex-chairman Cyrus Mistry that has reached the courts.
The Trusts, which own two-thirds of Tata Sons, were instrumental in removing Mistry, first as chairman and then as director on the board of the holding company.
“Perhaps, with his message Tata wants to send out a message: the battle is done and dusted and the group and Trusts have a bright future ahead," said Shriram Subramanian, managing director at InGovern Research, a proxy advisory firm.
Ten days ago, Natarajan Chandrasekaran took over as Tata Sons chairman and the first major decision that has been taken under his tenure was the resolution of a spat with Japan’s NTT Docomo Inc. over the latter’s exit from Tata Teleservices Ltd.
Friday also marked the 125th anniversary of the Tata Trusts. The oldest of the trusts, the J.N Tata Endowment, dates back to 1892 and the youngest, The Tata Education & Development Trust, was set up in 2008.
As one of the largest community stakeholders for the Trusts, Tata group employees have played an important role in making “the legacy" come alive, Tata said in his message to employees.
“For me personally, it’s a celebration of what each one of you brings to our organisation," he wrote in his letter.
“You are the inheritors and the custodians of the Trusts and of our belief in making a sustainable change to society," wrote Tata. “Hope you are proud of our group’s capacity of thinking beyond business. It is this strength and intention that is reflected through the Trusts in their vision and their work."
The Trusts had said earlier that they had not received sufficient dividends from Tata Sons under Mistry to continue with their charitable work. In July, the Trusts had formed a committee under Ratan Tata to protect their interests in Tata Sons, Mint reported on 28 February.
“It is important that Tata Sons and Tata Trusts move in harmony so that we can carry on with our philanthropic activities in an uninterrupted manner," said V.R. Mehta, a trustee of Tata Trusts, in an interview on Friday. The credibility of the Trusts, he added, has helped it join hands with some of the biggest philanthropic organizations in the world, such as the Bill & Melinda Gates Foundation.
Following his ouster, Mistry alleged that the Trusts and some trustees interfered excessively in the affairs of listed Tata companies and took undue advantage of their position—a charge that has been denied.
At the peak of the battle with Tata Sons in December, Mistry even sought government intervention in Tata Trusts’ affairs and said the government has an “inherent obligation" to “remedy and repair (the) breakdown" in the governance of the Trusts. He accused them of overstepping their rights. Mistry’s family-owned investment firms have approached the National Company Law Tribunal alleging mismanagement of Tata Sons and oppression of minority shareholders. A ruling is pending.
Separately on Friday, in a speech to Tata Steel Ltd employees at its Jamshedpur factory, Tata praised Chandrasekaran at a meeting attended by the new chairman.
“The company is in great hands and I look forward to hearing about the progress that Jamshedpur and Tata Steel makes under Chandra’s leadership," Tata said.
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