New Delhi — In a significant intervention in the long-running governance tussle within the Tata Group, senior advocate and former Additional Solicitor General Abhishek Manu Singhvi has publicly backed the supremacy of the Tata Trusts, arguing that the group's board of directors cannot function independently of the trusts, which collectively hold approximately 66 per cent of the equity in the sprawling salt-to-software conglomerate.
Singhvi's remarks come at a critical juncture in the corporate drama that has engulfed one of India's oldest and most respected business houses. The Tata Trusts, comprising the Sir Ratan Tata Trust and theSir Navajee Tata Trust among others, are the largest shareholders in Tata Sons, the holding company at the apex of the Tata Group. For decades, the trusts have asserted their right to appoint and remove directors on Tata Sons' board, a position that has recently faced fierce resistance from certain board members and pro-Tata Group chairmanship claimants.
Speaking on the matter, Singhvi described any board that attempts to act without acknowledging the trusts' shareholder dominance as a "runaway board" — a body that has lost its tether to the very owners it serves. "The board cannot act independently of an entity that owns 66 per cent of the salt-to-software conglomerate," he stated, reinforcing the legal and practical reality that no board can function in complete defiance of its majority shareholder.
The legal opinion underscores a longstanding principle of corporate governance: majority shareholders retain the ultimate authority to shape the direction of a company, including the power to replace directors. Critics of the Tata Trusts' stance have argued that the trusts should not wield disproportionate influence over commercial decisions, but supporters counter that the trusts were established precisely to safeguard the Tata Group's legacy and social mission.
The dispute has drawn attention from investors, regulators, and the public alike, with the Securities and Exchange Board of India (Sebi) monitoring developments closely. Legal experts suggest that Singhvi's intervention adds weight to the trusts' camp and could influence ongoing negotiations and potential litigation.
As the Tata Group continues to navigate this internal conflict, all eyes remain on how the board will respond and whether a settlement can be reached that preserves both the governance integrity and the unified identity of the 158-year-old business empire.
