Tata Sons Ltd. plans to separate the chairmanship of its board from chairman of the two trusts: Sir Dorabji Tata and Allied Trusts and Sir Ratan Tata Trust.
The company is seeking shareholder's approval for the amendment in the Articles of Association of the company at the upcoming Annual General Meeting on Aug. 30, according to company's notice to shareholders.
The company had received a request from Sir Dorabji Tata Trust and Sir Ratan Tata Trust for the amendment, the notice said.
Currently, the two trusts together hold 51.5% stake in Tata Sons. Both the trusts are headed by Ratan Tata, chairman emeritus of the Tata Group.
If the resolution is approved with majority of 75%, the chairman of either of the trusts won't be eligible to hold the position of chairman on the board of Tata Sons, the group's holding company, .
However, the selection committee for the chairman of the board will continue to comprise three members jointly nominated by the two trusts, a nominee from the board of the company, and an independent outside person selected by the board.
Separately, the company reported a 2.6 times jump in net profit in FY22 to Rs 17,171.2 crore, according to its annual report. That was aided by other income.
Its revenue from operations rose 33% to Rs 12,573 crore. Its primary source of revenue is dividends from the Tata Group companies.
Over 90% of its net assets are in the form of investments and loans to various group companies.
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories â On NDTV Profit.
