Tata Sons reviews AoA to meet Sebi listing norms as Trusts’ rights face scrutiny

Tata Sons has started reviewing its Articles of Association to align with Sebi listing requirements, a process that could affect the special board nomination and voting rights held by Tata Trusts, which owns about 66% of the conglomerate's holding company. The review follows the Reserve Bank of India's rejection of Tata Sons' application to give up its core investment company registration, requiring it to list within three years. Any changes to the AoA will need a special resolution at a general meeting.

Separately, the reappointment of chairman N Chandrasekaran for a five-year term from 21 February 2027 has sparked a dispute. Tata Trusts chair Noel Tata, a board nominee, opposed the 17 September resolution, arguing the board did not form a selection committee as required under Article 118 of the AoA. The other Trusts nominee, Venu Srinivasan, voted in favour, and nomination committee chief Harish Manwani used a casting vote to clear the reappointment. Tata Sons has cited legal advice to defend the process. The AoA review is at an early stage with no final amendments approved.