Tata Sons is planning to convene its annual general meeting (AGM) within the next month as it looks to address pending corporate matters, despite continuing restrictions affecting the Sir Ratan Tata Trust (SRTT), according to people familiar with the matter cited by The Economic Times.
The company may approach the National Company Law Tribunal (NCLT) if the existing restrictions prevent the required quorum for the meeting.
AGM Was Earlier Deferred
Tata Sons’ AGM scheduled for August 18 was deferred after the meeting could not meet its quorum requirement. The company has since received a three-month extension from the Registrar of Companies, giving it until December 31, 2026, to conduct the AGM.
The quorum problem is linked to restrictions imposed on SRTT by the Maharashtra Charity Commissioner. The restrictions have affected the trust’s ability to hold meetings and make decisions, preventing the joint nomination of a representative with the Sir Dorabji Tata Trust (SDTT).
NCLT Could Provide a Legal Route
Under Section 97 of the Companies Act, 2013, the NCLT can direct that an AGM be called and can determine how the meeting should be conducted. Legal experts cited by ET said this could potentially allow Tata Sons to proceed if its normal quorum requirements cannot be fulfilled.
However, such a move would not necessarily resolve the wider dispute. An affected shareholder could challenge the meeting or resolutions passed during it, potentially leading to further legal proceedings.
Chandrasekaran’s Reappointment on Agenda
One of the important matters expected at the AGM is the reappointment of N Chandrasekaran as a director. His directorship is relevant to his continuation as chairman of Tata Sons.
The August AGM could not consider the matter because of the quorum issue. According to ET, if a valid AGM cannot be held, Chandrasekaran would continue as a director until a properly constituted meeting considers his reappointment.
The AGM comes amid broader differences within Tata Sons over governance and the company’s proposed listing.
