Tata Trusts calls Chandrasekaran reappointment illegal

Tata Sons board reappointed N Chandrasekaran as executive chairman for a five-year term starting February 21, 2027, in a 4-1 vote on September 17. Noel Tata, chairman of Tata Trusts, opposed the resolution, which the Trusts later called a "legal nullity" and "illegal" under the company's Articles of Association. The articles require a majority of the Trusts' nominee directors to vote in favour, and with one of the two voting against, the Trusts argue the resolution is void. Chandrasekaran had communicated his intention not to seek reappointment on August 12, a decision the Trusts say had "attained finality".

The board also agreed to proceed with the public listing of Tata Sons, following the Reserve Bank of India's rejection on September 11 of the company's application to surrender its core investment company registration. Tata Sons had earlier repaid over Rs 21,000 crore in debt seeking an exemption. The reappointment and listing decisions require shareholder approval at the company's annual general meeting. The dispute pits the Tata Trusts, which control about 66 percent of Tata Sons, against the company's board and highlights a deepening governance battle.