Tata Sons is preparing to convene its annual general meeting (AGM) within the next month, but continuing restrictions on the Sir Ratan Tata Trust (SRTT) could again create a quorum problem. The meeting is expected to consider pending matters including N Chandrasekaran’s reappointment as a director.
The previous AGM, scheduled for August 18, was adjourned after the required quorum was not available. Tata Sons subsequently received a three-month extension from the Registrar of Companies, allowing it to hold the meeting by December 31, 2026.
The quorum issue is linked to restrictions imposed on SRTT by the Maharashtra Charity Commissioner. SRTT and the Sir Dorabji Tata Trust (SDTT) together hold a majority stake in Tata Sons, and their joint representation is relevant to the company’s quorum requirements. SRTT holds 23.56% and SDTT 27.98%, giving the two trusts a combined 51.54% stake.
If the restrictions remain and the required quorum cannot be formed, Tata Sons may approach the National Company Law Tribunal (NCLT) for directions to conduct the AGM. Section 97(1) of the Companies Act gives the tribunal powers to direct how an AGM should be called and conducted, including provisions concerning quorum.
The meeting has gained added significance following the Tata Sons board’s decision to reappoint Chandrasekaran for another five-year term. The decision has faced opposition from Tata Trusts chairman Noel Tata, making shareholder approval at the AGM an important pending corporate matter.
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