Tata Sons Boardroom Row Escalates as Tata Trusts Challenges Chandrasekaran’s Reappointment

The boardroom dispute between Tata Sons and Tata Trusts has intensified following the decision to reappoint N. Chandrasekaran as Tata Sons’ executive chairman for another five-year term. The Tata Sons board approved the resolution on September 17, but Tata Trusts has challenged its validity, arguing that the required affirmative support from its nominee directors was not secured. Tata Trusts, which holds around 66% of Tata Sons, has described the resolution as having no legal effect and has indicated that legal options are being considered.

The dispute has also raised questions over who would bear the legal expenses if the matter proceeds to court. Mehli Mistry, a trustee of the Tata Education and Development Trust (TEDT), has said the trust should not use its funds to meet legal costs related to the Tata Sons-Tata Trusts dispute, arguing that TEDT is not a shareholder in Tata Sons. The latest disagreement adds another layer to the wider governance dispute involving Chandrasekaran’s reappointment and Tata Sons’ future structure.