Chandra’s reappointment still needs shareholder nod, Trusts can block it

MUMBAI: In an unprecedented break with its principal shareholders, Tata Sons’ board Thursday voted to reappoint N Chandrasekaran as executive chairman for another five years, defying Tata Trusts, which called the resolution “a legal nullity”, exposing a split over leadership and strategy at India’s largest conglomerate.A Tata Sons statement after the board meeting said, “Chandra acceded to the board’s request to reconsider his decision”, capping a dramatic about-turn by the chairman who had ruled himself out about a month back for lack of unanimous board-level support. The board voted by four votes to one to reappoint him. Noel Tata, chairman of Tata Trusts, cast the sole dissenting vote while Chandra abstained.The vote exposed differences among Trusts’ own nominee directors. Article 121A of Tata Sons’ articles requires a majority of nominee directors to back a chairman’s reappointment. Trusts vice-chairman Venu Srinivasan voted in favour; Noel voted against.