A major divide has emerged in the Tata ecosystem over reappointing N Chandrasekaran as Tata Sons chairman. Tata Trusts has contested it While the Tata Sons board has backed a five-year extension.
Tata Sons said a majority vote held today favoured his reappointment. Tata Sons said its board had agreed in principle in 2025 to reappoint Chandrasekaran as Executive Chairman for five more years, but it could not pass a resolution this February due to a lack of unanimity. But Tata Trusts, the largest shareholder in Tata Sons with about 66% equity, argued that the vote was legally void since the Trust’s nominee director Noel Tata vetoed the proposal. The Nomination Remuneration Committee (NRC) of the board of Tata Sons met on September 3 to discuss Chandrasekaran’s resignation and discuss his reappointment as executive chairman, according to the holding company.
“Tata Trusts maintains that the resolution to reappoint N Chandrasekaran as Chairman, Tata Sons, is illegal,” a statement said. Once such a decision is publicly communicated, it has consequences that cannot be afterwards undone, it said. “The resolution seeking to reappoint N Chandrasekaran in the Board meeting today, with four directors voting in favour, and Noel Tata against, was a legal nullity in view of the provisions of the Articles of Association of Tata Sons,” the Trusts said in a statement.
