Stories
Tata Group Row: Noel Tata's Objections Ignored, Tata Sons Adamant on Chandrasekaran's Third Term.
- •Disputes persist within the Tata Group since Ratan Tata's departure; latest row over N Chandrasekaran's third term as chairman.
- •Noel Tata, Chairman of Tata Trust, opposed Chandrasekaran's reappointment, but Tata Sons remains firm.
- •Noel Tata challenged the legal validity of the vote cast for Chandrasekaran's appointment under the group's Articles of Association (AoA).
- •Tata Sons rejected Noel's objections, citing legal opinions from former Chief Justice U.U. Lalit and retired judge B.N. Srikrishna.
- •The dispute centers on Article 121, which requires consent from Tata Trust's nominee directors for certain board decisions.
Key Questions Answered
A dispute arose after Tata Sons voted 4-1 to reappoint N Chandrasekaran for a third term, which was opposed by Tata Trust Chairman Noel Tata. Noel Tata challenged the legal validity of the vote under the company's Articles of Association, while Tata Sons defended the appointment as legally valid based on opinions from former judges.
Tata Sons defended the legality of N Chandrasekaran's appointment by citing the legal opinions of former Supreme Court Chief Justice U.U. Lalit and retired judge B.N. Srikrishna. The company stated that the board resolution passed on September 17 was completely valid and rejected Noel Tata's objections.
The Tata Trusts own approximately 66 percent of Tata Sons, placing Noel Tata, as head of the Trusts, at the core of ownership and governance. Noel Tata opposed the reappointment, arguing that the chairman's earlier decision not to seek another term had attained finality, setting up a clash over voting rights and the group's succession process.
