Tata Trusts Challenge Chandrasekaran’s Reappointment

Tata Trusts has raised a key objection to the reappointment of N. Chandrasekaran as Chairman of Tata Sons. The Tata Sons board approved his reappointment on September 17, but Tata Trusts said the resolution was legally invalid. According to the Trusts, Tata Sons’ Articles of Association require affirmative support from a majority of Trust-nominated directors for the appointment or reappointment of the chairman. Tata Trusts has two nominee directors on the board, and one of them, Noel Tata, voted against the resolution. The Trusts therefore argued that the required support was not available.

Tata Trusts also rejected the argument that the chairman’s casting vote could resolve the issue. The Trusts said the casting vote applies in the event of a tie at the full board level and cannot override the separate requirement concerning its nominee directors. Four directors voted in favour of Chandrasekaran’s reappointment, while Noel Tata voted against it. The development has intensified the governance and leadership dispute within Tata Sons.