N Chandrasekaran Reappointed Tata Sons Chair, Legal Questions Remain Over Third Term

N Chandrasekaran Reappointed Tata Sons Chair, Legal Questions Remain Over Third Term

N Chandrasekaran has been reappointed as Tata Sons chairman for another five-year term, but questions remain over whether the decision fully satisfies the company’s governance requirements. The board approved his continuation after a vote ended in a tie between Tata Trusts’ two nominee directors, Noel Tata and Venu Srinivasan. Independent director Harish Manwani, who chaired the meeting, used his casting vote in favour of Chandrasekaran.

Tata Trusts and affiliated entities own about 66% of Tata Sons and have two nominee directors on its board. Noel Tata voted against the reappointment, while Srinivasan supported it. A legal opinion obtained by the Trusts from former Chief Justice of India D Y Chandrachud reportedly takes the view that a majority of the Trusts’ nominee directors must support the appointment and that a casting vote cannot override this separate requirement. The opinion is not a court ruling and does not itself invalidate the board’s resolution.

The dispute comes amid a broader disagreement over whether Tata Sons should remain unlisted. The company had sought to surrender its NBFC registration, but the RBI rejected the request and directed it to comply with regulations applicable to an upper-layer NBFC. Tata Trusts have maintained that the holding company should remain private.

The Shapoorji Pallonji Group, which holds about 18.4% of Tata Sons, has separately proposed monetising part of its stake to raise at least Rs 25,000 crore. The developments have put Chandrasekaran’s reappointment, Tata Sons’ governance structure and the future of any potential listing at the centre of an ongoing corporate dispute.

7

Published: 59m ago

cricket blog team

All India Story

All India Story is your trusted source for comprehensive and up-to-the-minute news coverage across India. Bringing you the latest on politics, business, technology, entertainment, sports, and more, we are dedicated to keeping you informed with accurate, engaging, and insightful stories from every corner of the nation.

Shapoor Mistry Backs Tata Sons Listing, Calls It a Social and Moral Imperative
Prev Article
Shapoor Mistry Backs Tata Sons Listing, Calls It a Social and Moral Imperative

Related to this topic: