- Tata Trusts declared Tata Sons board resolution reappointing Chandrasekaran illegal and null
- Noel Tata voted against Chandrasekaran's reappointment as per Tata Trusts' statement
- Tata Trusts cited Articles of Association requiring majority Trusts nominee approval
Tata Trusts has officially declared the Tata Sons board resolution reappointing N Chandrasekaran for a third term as "illegal" and a "legal nullity."
In a strongly worded press release on Thursday, the majority shareholder confirmed that Noel Tata, Chairman of Tata Trusts and a nominee director on the Tata Sons board, voted against the reappointment during Thursday's highly charged meeting.
According to the Trusts, the Articles of Association of Tata Sons strictly mandate that any appointment or reappointment of the Chairman requires an affirmative vote from a majority of the Trusts' nominee directors.
Because Noel Tata cast a dissenting vote, the Trusts maintain that the board's resolution—reportedly passed with four other directors in favour—is legally void and without any basis.
Fortifying its position, Tata Trusts revealed that Noel Tata submitted a legal opinion from former Chief Justice of India D.Y. Chandrachud backing the Trusts' stand. However, the statement alleged that the Tata Sons board completely ignored this legal opinion during the proceedings.
ALSO READ: Tata Sons Board Reappoints N Chandrasekaran For Third Term, Initiates Steps For RBI Compliance
The Trusts are refusing to recognise the board's reversal on Chandrasekaran's future. The statement argued that his August 12 communication, where he opted not to seek a new term when his current tenure ends in February 2027, was freely taken and has now attained finality.
Since the initial exit decision was made public, the Trusts noted that the market, lenders, employees, and majority shareholders had already proceeded on that basis, meaning the move cannot simply be undone.
Rejecting the board's recent push for leadership continuity, Tata Trusts has firmly directed Tata Sons to stick to the original succession plan. The Trusts have advised the holding company to immediately form a Selection Committee to find a new Chairman in the long-term interests of the Tata Group.
ALSO READ: Tata Sons Board Backs Chandrasekaran's Extension, IPO Proposal; Noel Tata Exercises Veto: Sources
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