Tata trusts opt for experts as board nominee in Tata Sons

Tata trusts are opting for experts on the board of Tata Sons, the promoter of major operating companies of the $100 billion salt-to-software conglomerate Tata Group.

The latest appointment of Nitin Nohria, the Dean of Harvard Business School, as a non-executive director on the board of Tata Sons is a reflection of this.

One-third right
When contacted, a Tata Sons spokesperson said: "The Tata trusts can nominate one-third of the directors of Tata Sons.

"Nitin Nohria and Vijay Singh are currently the nominees of the Tata trusts on the Tata Sons Board."

The present board
Tata Sons had a few months earlier inducted former bureaucrat Singh on its board. At present, the board has six directors - Cyrus P Mistry, Ishaat Hussain, R Gopalakrishnan, F K Kavarana, Vijay Singh and Nitin Nohria. The board can have up to 15 directors, the spokesperson added.

In the past, the trusts had nominated Ratan Tata, N A Soonawala and R K Krishna Kumar, all of whom have retired from the board.

When asked about the roles played by the nominees of the Tata trusts, the spokesperson said: "In keeping with the shareholding of the trusts in Tata Sons, the nominees play their rightful role in the governance of the company and discharge their fiduciary responsibilities as directors."

The Tata trusts, instituted by members of the Tata family, control 66 per cent of the shares of Tata Sons.