Chandra's reappointment 'illegal', says Noel Tata-led Tata Trusts

Tata Trusts has called N Chandrasekaran's reappointment as Tata Sons chairman "illegal", citing the company's Articles of Association and Noel Tata's dissenting vote

Tata Trusts on Thursday said in statement that the Tata Sons board’s decision to reappoint N Chandrasekaran as executive chairman for another five years is “illegal”, arguing that the resolution did not comply with the company’s Articles of Association.

Noel Tata, who is chairman of Tata Trusts, said the same in his statement at the board meeting and called the move “premature.”

In its statement, Tata Trusts - which is the largest shareholder in Tata Sons with a 66 per cent holding - emphasised that Chandrasekaran had decided that he would not to seek another term after his current tenure ends on February 20, 2027, and that the Trusts had accepted the decision in August.

However, on Thursday, the Tata Sons board approved Chandrasekaran’s reappointment for five years after he agreed to reconsider his earlier decision. The resolution was approved with four directors voting in favour, and Noel Tata dissenting.

Tata Trusts cite Articles of Association

The Trusts said the Articles of Association require a majority of the Trusts’ nominee directors to vote in favour of the appointment of the Tata Sons chairman.