Noel Tata challenges N Chandrasekaran's reappointment at Tata Sons

Noel Tata, Chairman of Tata Trusts, has formally challenged the September 17 board meeting of Tata Sons regarding the reappointment of N Chandrasekaran as executive chairman for a five-year term. In a letter to the Tata Sons board, Tata requested the minutes and video recordings of the meeting, while questioning the legal basis for the decision.

Tata Trusts, which holds a 66% stake in Tata Sons, has characterized the reappointment as “illegal” and a “legal nullity.” Noel Tata, who serves as a nominee director on the Tata Sons board, reportedly voted against the move. He has contested the procedure, noting that the reappointment was not listed on the meeting agenda but was instead raised under a “Debrief by NRC” heading.

The dispute centers on the interpretation of the Tata Sons Articles of Association, specifically regarding the use of a casting vote. Tata Sons has defended the decision by citing legal opinions from former Chief Justice of India Uday Umesh Lalit and former Supreme Court judge BN Srikrishna, who described the resolution as “validly passed.” Conversely, Tata Trusts has cited an opinion from former Chief Justice D Y Chandrachud to support its position that the reappointment lacked the necessary support from both nominee directors.