TVS Family to subscribe to terms of memorandum of family arrangement

The members of the TVS Family on Thursday agreed to subscribe to the terms of a memorandum of family arrangement in order to record the terms of a family arrangement to align and synchronise the ownership of shares in various companies or businesses belonging to the group with the management of the respective companies or business.

Pursuant to the family arrangement, the existing management of the various listed and unlisted companies and businesses in the TVS Group will continue to be managed by the same family members. The nominated members of the TVS family will now deliberate on the steps to be taken to further implement this arrangement.

According to the arrangement, TVS Group chairman Venu Srinivasan and family including his son Sudarshan will be in management of TVS Motor and all group companies including TVS Credit, and Sundaram Clayton. The brand is being allotted to each family group and company for their use in their lines of business on a perpetual, royalty-free basis.

The TVS Group essentially consists of businesses started by the original founder, T V Sundaram Iyengar and his lineal descendants constituting the TVS Family. Over the decades, the TVS Family has expanded their businesses and the TVS Group has grown into a large business conglomerate with interests in several businesses operating in diversified fields.

“With the passage of time, the members of the TVS Family felt that the ownership of shares in various companies/ businesses should align and synchronise with the management of the respective companies and therefore, the memorandum of family arrangement has been entered into,”a statement from the group said.

The TVS Group has always been known for the decades of trust it has built with its stakeholders and it is expected that this family arrangement will further enable the existing management of the respective companies/ businesses to continue to engage with its stakeholders even more effectively, it added.