Big battle breaks out: Tata Trusts call reappointment of Chandrasekaran as chairman 'illegal'
Tata Trusts has declared the board's reappointment of N Chandrasekaran as chairman of Tata Sons 'illegal', citing a lack of consensus. The dispute creates a major governance crisis for the conglomerate, which is also planning to list its holding company.
Why it matters
This internal conflict threatens the stability and strategic direction of one of India's largest business groups.
A major battle has broken out at Tata Sons after Tata Trusts on Thursday called the board’s decision to reappoint N Chandrasekaran as chairman for another five-year term “illegal”, setting up a potential legal and governance dispute at the top of the Tata Group.The Trusts said the resolution approving Chandrasekaran’s reappointment was a “legal nullity” because Noel N Tata, chairman of Tata Trusts and one of the Trusts’ nominee directors on the Tata Sons board, voted against it.The Tata Sons board had on Thursday approved a fresh five-year term for Chandrasekaran, weeks after he told directors that he did not intend to seek reappointment when his current tenure ends on February 20, 2027, according to people familiar with the matter.The board also agreed to move ahead with the listing of Tata Sons, the holding company of the Tata Group, news agency PTI reported.
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