Religion no bar for trustees: Tata Trusts

Mumbai: Tata Trusts said in an internal note that there is no legal bar on non-Zoroastrians serving as trustees at the Bai Hirabai JN Tata Navsari Charitable Institution, citing a 2000 opinion by former chief justice of India MH Kania. This follows trustee Mehli Mistry questioning the eligibility of Venu Srinivasan and Vijay Singh to be Bai Hirabai trustees because of their faith.In an internal note addressed to Tata Trusts chairman Noel Tata and trustees, Tata Trusts CEO Siddharth Sharma referred to provisions of the trust deed and Kania's opinion, which held that certain restrictive clauses were "bad in law," in view of a codicil to the will of Sir Ratan Tata. The opinion had previously guided trustee appointments, he said. ET has seen the note.Also Read: Venu Srinivasan exits Bai Hirabai TrustThe internal note from Sharma followed the resignation of Venu Srinivasan on Saturday as Bai Hirabai trustee. That's brought the number of trustees down to five-the minimum required. The current board includes Noel Tata, Jimmy Tata, Darius Khambata, Jehangir H Jehangir and Vijay Singh, the latter now being the only non-Zoroastrian among them. Executives close to the Tata Trusts told ET there are no religion-based eligibility clauses in the two principal Tata Trusts-Sir Ratan Tata Trust (SRTT) and Sir Dorabji Tata Trust (SDTT)-indicating that trustee appointments in these entities are not subject to similar interpretational questions. Also Read: TVS family rift spills into Sundaram Clayton boardroomTata Trusts chairman Noel Tata did not comment.The move by Mehli Mistry comes after he backed off from challenging the leadership late last year, following his reappointment to the Sir Dorabji Tata Trust and the Sir Ratan Tata Trust not being approved by a majority of trustees in October. The two trusts hold a majority stake in Tata Sons, the conglomerate's holding company, making them central to decision-making within the group. The move marked the consolidation of control under Noel Tata, who became chairman of the Tata Trusts earlier last year. In a filing before the Maharashtra Charity Commissioner, Mistry said both individuals did not meet the criteria required under the trust deed at the time of their appointment and are therefore disqualified.He pointed to specific clauses in the deed that, in such cases, treat trustees as "deemed dead." Mistry contended that neither Srinivasan nor Singh belong to the Zoroastrian faith, nor do they have permanent residence in Mumbai-conditions he claimed are mandatory-making them ineligible by default. He sought a suo motu inquiry and has urged the Charity Commissioner to require all trustees to submit affidavits confirming their eligibility. The late group patriarch Ratan Tata had sought legal opinion on the trust deed of Bai Hirabai, particularly clauses 6, 18, 23, 25. The opinion by Kania stated that in view of clause 4 of the codicil of Sir Ratan Tata, clauses 6 and 18 were bad in law. As per the opinion, on the basis of which RK Krishnakumar was appointed a Bai Hirabai trustee at the time, there was no bar on non-Zoroastrians. Tata Trusts CEO Sharma maintained that Singh's appointment remains legally tenable.The Bai Hirabai JN Tata Navsari Charitable Institution, set up in 1923, focuses on education and healthcare initiatives for the Parsi community in Navsari, Gujarat, and operates as part of the allied Tata Trusts network, sharing trustees with the Sir Ratan Tata Trust.

from Economic Times https://ift.tt/OPyjX0H