Tata Trusts dispute: Shareholder rights cannot be nullified, says Abhishek Manu Singhvi
New Delhi, Sep 20 (IANS) Senior advocate Abhishek Manu Singhvi, representing Tata Trusts in its escalating dispute with Tata Sons, on Sunday said that the fundamental rights of owners who are shareholders cannot be nullified, warning that such a move could have wider implications for corporate governance in hundreds and thousands of Indian companies.
Singhvi said that as he enters the dispute as a lawyer representing one side, his focus would be on the fundamental legal issues involved. He said the rights of shareholders could not be diluted or nullified in a manner that undermines established principles of corporate governance.
“To dilute or nullify the rights of owners who are shareholders would spell doomsday for hundreds and thousands of Indian companies for corporate governance,” Singhvi said.
He also raised concerns over what he described as a sudden order from the charity commissioner that has prevented one of the trusts from convening to decide how it should proceed.
Singhvi said that efforts to “stymie decision-making and to freeze action” within one of the trusts amounted to undermining democratic decision-making within the charitable organisation.
The senior advocate further highlighted the longstanding relationship between Tata Trusts and Tata Sons, describing it as a relationship built over more than 100 years with established practices.
He said that rupturing this relationship and treating Tata Trusts and Tata Sons as though they were completely separate entities was “legally or otherwise unthinkable”.
Singhvi also expressed personal sadness over the escalation of the dispute, recalling his association with the Tata group and its former chairman Ratan Tata. He said he had worked closely with Ratan Tata and had seen the legacy of the Tata group and its trusts and companies at close quarters.
“Having worked closely with Ratan Tata, having seen the legacy of the Tata group at close quarters, both trust and companies, knowing not only all the principal actors on each side closely, but also having excellent equations with them, having genuine abiding respect for each side’s people, my first reaction is one of sadness,” Singhvi said.
–IANS
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