Who controls Tata Sons? Why Tata Trusts’ 66% stake does not tell the whole story

The Tata Group’s ongoing power struggle has raised a fundamental governance question: who really controls Tata Sons, the holding company at the centre of the $185 billion conglomerate? While Tata Trusts collectively own about 66% of Tata Sons, their influence depends on how trustees, directors and other shareholders align on key decisions, according to Bloomberg News.

The issue came into focus on September 17, when Tata Sons directors voted to extend Chairman N Chandrasekaran’s tenure by five years and decided to comply with a regulatory direction for a public listing. Both decisions went against the position taken by Noel Tata, chairman of Tata Trusts.

Tata Trusts’ 66% stake

Tata Trusts’ combined 66% holding gives the charitable institutions a majority stake in Tata Sons. However, Bloomberg News reports that the Trusts’ position has become divided.

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Venu Srinivasan, chairman emeritus of TVS Motor and one of two Tata Trusts representatives on the Tata Sons board, opposed Noel’s preferences on the contentious issues. Srinivasan is also the longest-serving member of the Tata Sons board, giving him significant institutional experience.

That split matters because the Tata Trusts’ influence is strongest when their representatives act together. With Noel and Srinivasan on opposing sides, the majority shareholder’s position is no longer as unified as it was during earlier boardroom battles.

Other shareholders also matter

The Shapoorji Pallonji Group, which owns an 18.4% stake in Tata Sons, is the company’s largest minority shareholder. The Mistry family has historically supported a public listing of Tata Sons.

For the SP Group, the issue has a significant financial dimension. Its Tata Sons holding is described by Bloomberg News as its most valuable but illiquid asset, while the group carries substantial debt. A listing could potentially provide a route to monetising that stake.

The relationship is particularly complex because Noel Tata’s wife, Aloo Mistry, is Shapoor Mistry’s sister. The Tata and Mistry families have nevertheless been embroiled in a long-running corporate dispute following the removal of Cyrus Mistry as Tata Sons chairman in 2016.

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Regulators and independent directors add another layer

The Maharashtra Charity Commissioner, Amogh Kaloti, also has a significant role because his office oversees charitable trusts registered in the state, including Tata Trusts.

Regulatory restrictions involving Sir Ratan Tata Trust contributed to the postponement of Tata Sons’ annual shareholder meeting, according to Bloomberg News. The outcome of pending proceedings could therefore affect the Trusts’ ability to exercise their shareholder influence.

Meanwhile, independent Tata Sons directors including Harish Manwani and Anita George voted to extend Chandrasekaran’s tenure despite Noel’s objections.

The result is a more complicated governance structure than the headline 66% ownership figure suggests. Tata Trusts remain the majority shareholder, but board votes, trustee alignment, minority shareholders and regulatory decisions can all influence how that ownership translates into control over Tata Sons.

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