Tata Sons seeks to tweak preference shareholder rights

Move could provide voting rights to such holders in case dividend is not paid for 2 yrs

Tata Sons, the holding company of the Tata group, has sought shareholders’ approval to make a significant change in its articles of association — to give voting rights to its preference shareholders in case the company defaults in payment of dividend for two years.

The annual general meeting (AGM) notice to Tata Sons’ shareholders proposes to insert a new article 6 (D), which says in case dividend in respect of preference shares has not been paid for a period of two years or more, then such class of preference shareholders will have a right to vote on all the resolutions to