Venu Srinivasan has been made the lifetime trustee of Tata Trust.
Tata Trust has unanimously re-appointed Venu Srinivasan as Life Trustee. Amid alleged internal differences within the organization, all eyes are now on the decision regarding Mehli Mistry’s return. Srinivasan’s tenure was to end on October 23, before which his reappointment was approved this week. The decision comes amid reports of divisions within the Tata Trusts, with a faction said to be linked to Noel Tata. Noel Tata took over as chairman after the death of Ratan Tata. The second group is of the loyalists of the former veteran. The biggest question is who is Venu Srinivasan? The special thing is that Venu Srinivasan’s auto is popular especially in the two wheeler sector.
Is Srinivasan the owner of TVS?
A source with direct knowledge of the matter said that the re-appointment of Honorary Chairman of TVS Group Srinivasan has been done unanimously. TVS Group is among the top companies in the two wheeler segment. At present, TVS’s market share in the two wheeler segment is more than 17 percent. In the first quarter of the current financial year, the company’s revenue had seen an increase of 20 percent. Further increase in the company’s revenue may be seen in the second and third quarters. After GST reform, there may be a big increase in the company’s revenue in the third quarter. At present the valuation of TVS company is around Rs 1.75 lakh crore.
Focus on appointment of Mehul Mistry
Now the focus is on the reappointment of Mistry, whose tenure ends on October 28. Opinion is divided on whether his tenure will automatically be extended or whether life tenure will require unanimous approval of the trustees. Tata Trust holds 66 per cent stake in Tata Sons – the holding company of the 156-year-old Tata Group. It includes about 400 companies including 30 listed units. A source said that as per previous practice, renewal and new appointment must be done unanimously. However, another person said that reappointment is automatic and applies to all trustees.
What rule was made?
Referring to the joint meeting of trustees of Sir Dorabji Tata Trust and Sir Ratan Tata Trust held on October 17, 2024, the person said it was resolved that on the expiry of the tenure of any trustee, he will be re-appointed by the respective trust without any limit on the tenure period. Apart from this, as per the proposal of October 17, 2024, all the trustees will be appointed on long-term and lifetime basis and the trusteeship will be reconsidered on attaining the age of 75 years.