Tata Trusts declares Chandrasekaran reappointment ‘void ab initio’, escalates rift with Tata Sons board

MUMBAI: Tata Trusts on Sunday fired a fresh salvo in the ongoing rift with Tata Sons over the issue of the re-appointment of N. Chandrasekaran as the Chairman of the Company, saying there was no deadlock at the board meeting on September 17 and a casting vote cannot revive a stillborn resolution.

"The resolution to reappoint Mr N. Chandrasekaran as the Chairman of Tata Sons, considered at the Board meeting on September 17, 2026, was not validly passed and has no legal effect. In the eyes of the law, it is void ab initio," the statement said.

 The statement highlights that the Supreme Court judgment in the Tata-Mistry case has upheld the protective right of Tata Trusts as the majority shareholder.

According to the statement, the Articles of Association (AoA) of Tata Sons do not leave any decision of the Board to a mere head count of Directors. They provide that no decision can be taken unless it has the affirmative support of at least a majority of the Directors nominated by the Tata Trusts, who hold approximately 66 per cent of the Company. This is a separate condition under the AoA.

There are two Tata Trusts nominees on the Board of Tata Sons. The majority amongst the two is two, not one. On September 17, 2026, one such Director voted against the resolution. Thus, the affirmative support of Tata Trusts Nominee Directors as mandated by the AoA was not given. The condition failed, and so did the resolution. The Chairman's casting vote is available only where there is equality of votes at the overall board level. It does not apply amongst Tata Trusts' Nominee Directors, the statement observes. (IANS)

Also Read: Tata Sons Extends Chandrasekaran’s Tenure by Five Years, Setting Stage for Clash with Tata Trusts