Tata Trusts has declared that the Tata Sons board resolution passed on 17 September to reappoint N Chandrasekaran as Chairman is void ab initio. The Trusts said the resolution was not validly passed because it lacked proper approval from its nominee directors. Tata Trusts owns 66% of Tata Sons and has two nominee directors on the board. One of them opposed the resolution, which meant the requirement under the Articles of Association was not met.
The Trusts stated that the resolution has no legal effect and cannot be considered binding. They emphasised that unanimous support from both nominees is necessary for such a decision to stand. This development has created uncertainty around Chandrasekaran’s continuation as Chairman of Tata Sons.
The issue highlights governance tensions between Tata Sons and Tata Trusts. Chandrasekaran has played a central role in the group’s growth and expansion in recent years. However, the intervention by Tata Trusts shows its decisive influence in board matters.
The dispute may force Tata Sons to revisit compliance with its Articles of Association and seek consensus with Tata Trusts. Investors and stakeholders are closely watching the situation as it could affect stability and confidence in India’s largest conglomerate.
