New Delhi [India], November 1 (ANI): Changes in business performance or valuations after a family arrangement has been documented cannot, by themselves, justify reopening or altering the agreement, proxy advisory firm InGovern Research has said in its report on the ongoing TVS family succession dispute.

In its November 2026 corporate governance report titled 'When Family Succession Disputes Become a Listed-Company Governance Risk - Lessons from the TVS Succession Matter,' InGovern said any changes to documented family arrangements must be supported by their terms and applicable law.

'Relative business performance or valuation changes after the relevant reference date should not, by themselves, be a basis to vary the arrangement,' the report stated.

It added, 'Where parties dispute whether a complete settlement was reached, the appropriate course is to determine that issue through the documented arrangement, underlying agreements and applicable legal processes.'

The observations come amid differences within the TVS family over whether a memorandum of understanding (MoU) signed in March 2024 amounted to a complete economic settlement.

On October 11, TVS Motor Chairman Emeritus Venu Srinivasan stated that the separation of his personal assets and family businesses had been carried out fairly and transparently.

However, on October 12, Mallika Srinivasan and Lakshmi Venu maintained that no mutually agreed economic settlement had been reached within the family.

InGovern noted that TVS Holdings had informed the stock exchanges in March 2024 about an MoU executed by Venu Srinivasan, Mallika Srinivasan, Lakshmi Venu and Sudarshan Venu.

However, the disclosure did not establish whether a complete economic settlement had been concluded.

InGovern clarified that it was not determining the validity, fairness or completeness of the private family arrangement.

The report also highlighted that family succession disputes could create uncertainty for minority shareholders over promoter control, management continuity and the future direction of listed companies.

'Subsequent business performance and valuation changes should not, by themselves, be a basis to vary a documented family arrangement,' it reiterated.

The proxy advisory firm further noted that TVS Motor reported revenue of Rs 47,270 crore in FY2025-26, reflecting 30 per cent year-on-year growth, while operating profit before tax rose 40 per cent to Rs 4,975 crore.

However, it said strong business performance could not determine the fairness or completeness of a disputed family settlement.

On disclosure requirements, InGovern said it had not identified any subsequent stock-exchange filing by TVS Holdings or TVS Motor specifically disclosing the October 2026 family dispute.

It recommended that the listed companies assess whether recent developments require fresh disclosures concerning promoter control, ownership or succession arrangements.

The report emphasised that family disagreements should be resolved through documented agreements and legal processes without disrupting listed companies or affecting minority shareholders. (ANI)