'Condition was not met': Tata Trusts challenges Chandrasekaran reappointment resolution
Tata Trusts has challenged the validity of N Chandrasekaran's reappointment as chairman of Tata Sons, claiming the board resolution lacked the required support from its nominee directors. The Trusts argue that the Articles of Association require affirmative support from their nominees, which was not achieved.
Why it matters
This corporate governance dispute involves one of India's largest conglomerates and raises questions about board control and shareholder rights.
NEW DELHI: Tata Trusts has said the resolution to reappoint N Chandrasekaran as chairman of Tata Sons was not validly passed at the company’s September 17 board meeting, arguing that it did not receive the required support from Tata Trusts’ nominee directors.In a statement, Tata Trusts said the Articles of Association (AoA) of Tata Sons do not allow board decisions to be determined simply by a majority of directors. It said a resolution requires the affirmative support of at least a majority of directors nominated by Tata Trusts, which holds approximately 66% of Tata Sons.Tata Trusts said there are two of its nominee directors on the Tata Sons board and that both were required to support the resolution.“Majority amongst two is two and not one,” the Trusts said, adding that one of its nominee directors voted against the resolution on September 17.
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