Salt-to-software group Tata Sons’ shareholders have cleared a significant amendment to the articles of association (AoA), after which Tata Sons and Tata Trusts will have separate chairmen, according to a Business Standard report. Both entities hold 66 per cent of the Tata group.
After 2012, Tata Sons Chairmen, Cyrus Mistry and N Chandrasekaran, have not been chairmen of Tata Trusts. However, there was no legal provision for the separation. Till 2012, Ratan Tata held the position of Tata Sons chairman, besides being the chairman of the Tata Trusts. Chandrasekaran was appointed Tata Sons chairman in 2017.
At its annual general meeting (AGM) on Tuesday, Tata Sons unanimously passed the resolution, amendment of Article 118 of the Articles of Association, to ensure that the same person does not chair the holding company of the group as well as its biggest stakeholder.
In 2019, Noel Tata, who is the half brother of Ratan Tata, was appointed a trustee of Sir Ratan Tata Trust for three years. Earlier this year, he was appointed a trustee of Sir Dorabjee Tata Trust and Allied Trusts.
At the AGM, shareholders also cleared resolutions to renew the directorship of Ajay Piramal and Venu Srinvasan. They also cleared the appointment of Anita George as an independent director. 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 the Business Standard report quoting a source close to the development.
Any amendment to the AoA of Tata Sons requires the approval of 75 per cent of shareholders present in the meeting and by passing a special resolution. The Tatas had enough support in favour of the resolution, the report said quoting a source.
Meanwhile, Tata Steel on Tuesday said it will invest over 65 million euros for hydrogen-based steel manufacturing in the Netherlands. Hydrogen has the potential to decarbonise steel manufacturing.
Tata Steel has inked pacts with three firms — McDermott, Danieli and Hatch — for the further technical preparations for hydrogen-based steel manufacturing in the Dutch city of Ijmuiden. All three companies have their own specific proficiency that is needed together to assist Tata Steel in hydrogen-based steel manufacturing.
“The cost for this first development step is in excess of 65 million euros and will result in an engineering package that forms the basis for a final permitting and project planning,” the company said in a statement. The overall project is led by the Tata Steel internal project and sustainability team, with close support from the main delivery partners.
Tata Motors on Tuesday also said it has completed the acquisition of its partner Marcopolo’s stake in their bus body manufacturing joint venture Tata Marcopolo Motors Ltd. In December 2020, Tata Motors and Marcopolo had entered into an agreement, under which the homegrown automaker agreed to purchase 49 per cent shareholding of its Brazilian partner for Rs 99.96 crore in the joint venture. The 51:49 JV was formed in 2006.
The company has completed the procedural requirements under the share purchase agreement for acquiring the entire shareholding held by Marcopolo SA in Tata Marcopolo Motors Ltd (TMML), Tata Motors said in a regulatory filing.
Consequently, TMML has become a wholly-owned subsidiary of the company from August 29, 2022, it added. The JV had manufacturing facilities in Dharwad and Lucknow for building bus bodies on chassis supplied by Tata Motors and marketed under the ‘Starbus’ and ‘Starbus Ultra’ bus brands.
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