Tata Trusts on Thursday reiterated that the resolution seeking to reappoint Tata Sons Chairman N. Chandrasekaran is “illegal”, asserting that his earlier decision not to seek another term had already attained finality and that the succession process should proceed under the company’s Articles of Association.
The Trusts said Chandrasekaran had informed the Tata Sons Board on August 12 that he would not offer himself for reappointment after his tenure ends on February 20, 2027. According to the Trusts, they formally accepted the decision the following day and advised the company to constitute a Selection Committee to appoint a successor.
At Thursday’s Tata Sons board meeting, a resolution to reappoint Chandrasekaran received four votes in favour, while Tata Trusts Chairman Noel Tata voted against it. The Trusts argued that the Articles of Association require both Trust nominee directors to be present and vote in favour for any chairman appointment or reappointment, rendering the resolution legally void.
Noel Tata also submitted a legal opinion from former Chief Justice of India Justice D.Y. Chandrachud supporting the Trusts’ interpretation, which the Trusts said the Board did not consider.
In Kolkata, the development is expected to draw close attention from investors, financial institutions and corporate stakeholders, as leadership transitions within the Tata Group are closely tracked across eastern India, where several Tata companies have a significant business presence and investor base.