- Tata Trusts stated the resolution is void ab initio and has no legal effect
- One Tata Trust nominee voted against, so majority approval was not met
- Tata Trusts cited Supreme Court backing of nominee voting rights in dispute context
Tata Trusts said the resolution to reappoint N. Chandrasekaran as the Chairman of Tata Sons, considered at the board meeting on Thursday, Sept. 17, 2026, was not validly passed and has no legal effect.
"The resolution to reappoint N. Chandrasekaran as the Chairman of Tata Sons, considered at the Board meeting on Sept. 17, 2026, was not validly passed and has no legal effect. In the eyes of the law, it is void ab initio," the Tata Trusts said in a press release on Sunday.
ALSO READ: Tata Sons Board Backs Chandrasekaran's Extension, IPO Proposal; Noel Tata Exercises Veto: Sources
Also Read | Layoffs Are Rising In Tech, But These Skills Are Helping People Unlock Better Pay
The release stated that there are two Tata Trusts nominees on the Board of Tata Sons.
"Majority amongst two is two and not one," it said.
It noted that one of the directors voted against the resolution, adding that the affirmative support of Tata Trusts nominee directors, as mandated by the Articles of Association (AoA), was therefore not given.
-
Indian Markets Turning Corner After Two Tough Years, Says Sandeep Tandon -
NDTV Profit Ignite 2026: Experts See Opportunity In Equities, Stay Bullish For Long-Term -
Buy Right, Sit Tight Does Not Work for Individual Stocks, Says Dinshaw Irani -
'Worst Is Behind': Quant MF Sees Market Bottom, Flags 'Extreme Euphoria' In Midcaps -
India's Mutual Fund Industry Could Become A $1 Trillion Opportunity, Say Fund Managers -
'Foreign Investors Are Baraatis': Raamdeo Agrawal's Take On LTCG Tax -
Stay Invested Through Market Cycles: Raamdeo Agrawal at NDTV Profit Ignite -
Ramesh Damani Remains Bullish On India For Next 20-30 Years, Sees Bargains Amid Market Weakness -
CAS Came After A Long Consultation Process: SEBI Chairman Tuhin Kanta Pandey AT NDTV PROFIT IGNITE -
Aim To Cut FPI Onboarding Time From Mth To Five Days: SEBI Chairman Tuhin Kanta Pandey AT NDTV PROFI
"The condition failed, and so did the resolution," the release added.
The Trusts also said the Chairman's casting vote applies only when there is an equality of votes at the overall board level and does not apply among Tata Trusts' nominee directors.
It said the AoA require the affirmative support of at least a majority of the directors nominated by the Tata Trusts, which hold approximately 66% of Tata Sons.
ALSO READ: Tata Sons Board Reshapes 100-Year-Old Group In A Few Hours, One Meeting
The Trusts further argued that its nominee directors' affirmative voting rights under Articles 104B and 121 had previously been defended by Tata Sons before the Supreme Court in proceedings related to the removal of Cyrus Mistry.
The Supreme Court had accepted Tata Sons' position on the validity of these rights and set aside the finding that the Articles were oppressive, the release said.
"The company cannot now disown the protection it went to the Supreme Court to preserve," the Trusts said via the release.
Essential Business Intelligence, Sharp Market Insights, Practical Personal Finance Advice, Daily Fuel, Gold and Silver Prices and Latest Stories — On NDTV Profit.
