NEW DELHI (Diya TV) — Tata Sons has told Tata Trusts Chairman Noel Tata that its board lawfully reappointed N. Chandrasekaran as chairman for another five years, according to two people with direct knowledge of the letter who spoke to Reuters.
The letter is Tata Sons’ first formal response to the Trusts’ challenge to the Sept. 17 board decision. Tata Sons cited three legal opinions from lawyers and former senior judges in support of its position, the sources said. The company also told Noel Tata that its directors acted in accordance with their responsibilities to Tata Sons.
Tata Trusts, which owns about 66% of Tata Sons, argues that the reappointment required majority support from the Trusts’ nominee directors. Noel Tata opposed the resolution, while the other Trusts nominee, Venu Srinivasan, supported it. The two sides disagree over how Tata Sons’ governance rules apply to that split vote.
“Tata Trusts’ legal team is vetting the company response,” one of the sources told Reuters. Neither Tata Sons nor Tata Trusts immediately responded to Reuters’ requests for comment outside business hours.
The disagreement follows a Sept. 17 board meeting at which Tata Sons approved Chandrasekaran’s new term and decided to pursue steps toward a possible public listing. Noel Tata opposed both decisions, Reuters reported.
Chandrasekaran has chaired Tata Sons since 2017. The dispute leaves the validity of his latest reappointment contested between the holding company and its controlling shareholder.
