Mumbai, September 17, 2026 (Yes Punjab News)
Tata Trusts on Thursday rejected the Tata Sons board’s decision to reappoint N. Chandrasekaran as chairman for another five-year term, calling the resolution a “legal nullity” and maintaining that his earlier decision not to seek reappointment had already been accepted and had attained finality.
The development follows a dramatic reversal at Tata Sons, where the board approved a fresh five-year term for Chandrasekaran despite his earlier decision to step down when his current tenure ends on February 20, 2027. Reports also indicated that the board moved ahead with plans related to the listing of Tata Sons.
In its statement, Tata Trusts said Chandrasekaran had informed the Tata Sons board on August 12 of his decision not to offer himself for reappointment. According to the Trusts, the decision was voluntary, clearly communicated and was not the outcome of any review process.
The Trusts said the decision was made public without prior intimation to or deliberation with the company’s shareholders. It argued that once the decision had been publicly communicated, it could not subsequently be reversed because employees, lenders, counterparties, the market and the majority shareholder had proceeded on that basis.
Tata Trusts said it formally accepted Chandrasekaran’s decision the following day and advised Tata Sons to begin the process of constituting a Selection Committee to appoint his successor in accordance with the Articles of Association of Tata Sons.
The Trusts maintained that its position had not changed and represented the considered judgment of the company’s majority shareholder. This position was reiterated by Tata Trusts Chairman Noel Tata at Thursday’s board meeting.
According to the Trusts, the resolution to reappoint Chandrasekaran was supported by four directors, while Noel Tata voted against it. The Trusts argued that the Articles of Association require the presence of both nominee directors for the board to lawfully consider such a resolution and require both nominee directors to vote in favour for the appointment or reappointment to be valid.
With Noel Tata opposing the proposal, Tata Trusts said the resolution was therefore legally void. It added that Noel Tata submitted a legal opinion obtained from former Chief Justice of India Justice Dr DY Chandrachud concerning the Trusts’ position.
The dispute comes amid regulatory pressure surrounding Tata Sons. The Reserve Bank of India has classified Tata Sons as an upper-layer non-banking financial company, bringing it under regulatory requirements concerning listing. Recent reports said the Tata Sons board had also moved towards complying with the listing requirement.
The conflicting positions of the Tata Sons board and Tata Trusts now leave the status of Chandrasekaran’s reappointment at the centre of a corporate governance dispute, with the Trusts maintaining that the board’s resolution has no legal validity.
FOLLOW NOW
