Tata Trustees Oppose Plan to Merge Group Firms Into Sons

Tata Sons trustees Vijay Singh and Venu Srinivasan have raised concerns over the proposed merger of Tata Electronics Systems Solutions and Tata Consulting Engineers into Tata Sons.
In a joint letter to the trustees of the Sir Dorabji Tata Trust on Wednesday, the two said the reorganisation could have significant financial implications for Tata Sons, the Trust and other stakeholders.
They questioned whether it was proper for a shareholder to direct the Tata Sons board to approve a specific course of action. They said they learned of the proposal through public sources and that no meeting of trustees had authorised the letter sent to the Tata Sons board.
Tata Trusts chairman Noel Tata had announced the merger plan on Monday, saying it would help Tata Sons avoid a mandatory share listing.
Singh and Srinivasan, who have also complained to the Maharashtra Charity Commissioner about alleged governance lapses within the Trusts, said the matter requires proper analysis and deliberation, including consideration of the interests of Tata Sons.
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