Tata Trusts tussle: Majority vote for removal of Mehli Mistry, says report

In a dramatic turn of events, most of the trustees of the Tata Trusts reportedly voted in favor of ousting Millie Mistry. This comes amid a tussle at Tata Trusts that has divided the trustees at a critical time.

According to a report in The Economic Times, Mistry, who was once considered one of Ratan Tata’s closest confidants, now faces the possibility of being ousted after Chairman Noel Tata, Vice Chairman Venu Srinivasan and Trustee Vijay Singh refused to agree to renew his term. This would end his term in Tata charitable organizations. She added that with three trustees voting against its renewal, Mistry’s removal becomes a majority decision.

Sir Ratan Tata Trust (SRTT) and Sir Dorabji Tata Trust (SDTT) each hold 51 per cent of the Tata Sons SDTT trustees, who include Noel Tata, Venu Srinivasan, Vijay Singh, Mehli Mistry, Pramit Jhaveri and Darius Khambatta, while in SRTT, the trustees are Noel Tata, Venu Srinivasan, Vijay Singh, Jimmy Tata, Jehangir HC Jehangir, Mohli Mistry and Darius Khambatta.

While in the SDTT it is a majority vote, in the SRTT also – since Jimmy Tata does not usually participate – it is a majority vote, the report added.

Trustees Darius Khambatta, Pramit Jhaveri and Jehangir Jehangir have given their approval, but Mistry’s fate is probably sealed.

Tata believes in conflict

Last week, Mehli Mistry set a condition that all future trustee renewals must receive unanimous approval from the board. He communicated this requirement via email to his fellow trustees on October 21, stating that his continued approval as trustee was contingent on enforcement of this rule. This condition holds special significance for Mestre himself, because he was the first to be directly affected by this new situation.

In his letter, Mistry stressed that if any renewal decision of the trustees fails to achieve consensus, he will withdraw his approval.

After Ratan Tata’s death, the Tata Trusts initiated a policy under which reappointments would be made for life, subject to the renewal of the current term of trustee being unanimously approved. The precedent was set by the renewal of Noel Tata’s life term in January this year. Trustees whose terms are approved unanimously will serve without a fixed term.

Tensions within the Tata Sons board have been ongoing since September, when trustees Darius Khambatta, Millie Mistry, Pramit Jhaveri and Jehangir Jehangir voted to remove Vijay Singh as a board nominee, going against established practice. Next, they proposed Mistry as a board member, but this was blocked by votes of Noel Tata, Venu Srinivasan and Vijay Singh.