Tata Sons reappoints Chandrasekaran as Noel Tata votes no

Tata Sons board has reappointed N Chandrasekaran as executive chairman for a fresh five-year term, with four of the six board members voting in favour. Noel Tata, a nominee of Tata Trusts, voted against the resolution, while the other Trusts nominee Venu Srinivasan voted in favour. The board also gave the go-ahead for a potential listing of Tata Sons, which Noel Tata opposed.

Tata Trusts, led by Noel Tata, have termed the reappointment illegal under the company's Articles of Association, arguing that board decisions require backing from all Trusts nominees. The Trusts also oppose the listing, saying it would destroy the group's unique ownership structure where a charity is the majority shareholder. Noel Tata said the listing would strike at the heart of the group's century-old operating model of public service through business.

The RBI has already filed a caveat in the Bombay High Court, anticipating that the Tatas may challenge its directive to list Tata Sons. The group now faces a legal battle with the regulator, and the annual shareholders' meeting, where the Trusts hold sway, must ratify the board's decisions.