Tata Sons has secured an extension from the Registrar of Companies to hold its annual general meeting by December-end, a company executive confirmed on Saturday.
Tata Sons submitted an application for an extension on Thursday, as a lack of quorum had resulted in the adjournment of its shareholders’ meeting on August 18.
As per the Companies Act of 2013, an AGM must be held within six months of the end of the financial year (that is, by September end) and within fifteen months of the last AGM.
The application was made under section 96(1) of the Companies Act, and consent was granted for a three-month extension until the end of December.
AGM delay affects accounts, dividend and board appointment
The deferral of the AGM has affected the finalisation of Tata Sons’ FY 26 accounts, the declaration of a ₹4,474 crore dividend, and the reappointment of N Chandrasekaran as a director retiring by rotation.
The quorum issue arose as Sir Ratan Tata Trust, one of the two key shareholders of Tata Sons, is restricted by the Charity Commissioner of Maharashtra from holding meetings. The Articles of Association of Tata Sons require participation of a joint representative of SRTT and Sir Dorabji Tata Trust for fulfilment of the quorum. Since SRTT can’t meet, the quorum requirement can’t be fulfilled.
SRTT seeks relief from restrictions
Separately, SRTT has made another plea to the CCM to lift the restrictions that it imposed in May. The action was initiated on complaints of violations of the Maharashtra Public Trusts Act.
The trustees have now petitioned CCM to grant relief, as charitable activities, such as the disbursal of funds, are on hold. The trust also has to adhere to statutory requirements, and it needs to submit its annual accounts and investment declaration to the CCM. Importantly, the restriction is delaying decisions on AGM participation and the formation of a selection committee to choose the next chairman of Tata Sons after Chandrasekaran’s term ends in February 2027.