Tata Trusts on Thursday reiterated that a Tata Sons board resolution seeking the reappointment of N. Chandrasekaran as chairman is legally void, maintaining that his decision not to seek another term had already been accepted and had attained finality.
The Trusts said Chandrasekaran had informed the Tata Sons board on August 12 that he would not offer himself for reappointment when his current tenure ends on February 20, 2027. The decision, they said, was made independently and publicly communicated without prior discussions with shareholders. The Trusts formally accepted it on August 13 and advised Tata Sons to begin the process of constituting a Selection Committee to identify his successor in accordance with the company’s Articles of Association.
At Thursday’s board meeting, the reappointment resolution received four votes in favour, while Tata Trusts Chairman Noel N. Tata voted against it. The Trusts maintained that the Articles require both Trust nominee directors to be present and vote in favour for a chairman’s appointment or reappointment. It therefore termed the resolution a “legal nullity”.
Noel Tata also submitted a legal opinion from former Chief Justice of India Justice D.Y. Chandrachud supporting the Trusts’ position, which, according to the Trusts, was not taken note of by the Board.
In Kolkata, the development is likely to remain a key corporate governance issue for investors and market participants tracking Tata Group companies, particularly amid the proposed leadership transition and its potential implications for stakeholder confidence.
