Noel Tata Opposes Chandrasekaran’s Return; Tata Trusts Calls Extension ‘Illegal’

Tata Sons’ decision to reappoint N Chandrasekaran as chairman for another five-year term has triggered a fresh confrontation with the Tata Trusts, with Trusts Chairman Noel N Tata opposing the move and calling the board resolution a “legal nullity”.

The Tata Sons board on September 17 approved Chandrasekaran’s reappointment, reversing his earlier decision not to seek another term after his current tenure ends on February 20, 2027. The board’s decision was backed by four directors, while Noel Tata voted against it.

In a statement made at the board meeting, Noel Tata said Chandrasekaran’s August 12 decision not to offer himself for another term was his own decision and had been accepted by the Tata Trusts, which hold about 66% of Tata Sons.

Noel Tata Opposes Reappointment

Noel Tata said the Trusts had formally accepted Chandrasekaran’s decision and had asked Tata Sons to constitute a selection committee to appoint a successor in accordance with the company’s Articles of Association.

“The Chairman has conveyed his decision; the shareholders have conveyed their acceptance; it is now time to move on,” Noel Tata said in his statement.

The Tata Trusts reiterated this position after the board meeting, saying Chandrasekaran’s decision had “attained finality”. The Trusts also said the Articles require a majority of their nominee directors to vote in favour of the appointment or reappointment of Tata Sons’ chairman.

Since Noel Tata voted against the resolution, the Trusts said the reappointment was legally void. The Trusts said the requirement applied to both a first appointment and a reappointment.

Tata Trusts Cites Legal Opinion

Noel Tata also argued that the reappointment was premature because Chandrasekaran’s position as a director of Tata Sons was itself unresolved. He pointed to a general meeting that could not proceed for want of quorum.

He further said that deciding the chairmanship before resolving the director-related issue could expose Tata Sons to a legal challenge.

According to the Tata Trusts, Noel Tata also submitted a legal opinion from former Chief Justice of India Justice Dr DY Chandrachud supporting the Trusts’ position. The Trusts said the opinion was not taken note of by the board.

The dispute comes alongside another major issue for Tata Sons — its regulatory position and potential listing. Noel Tata said the company’s regulatory obligations and the leadership succession question should be dealt with separately.

“The considerations which bear upon the one have very little to do with the considerations which bear upon the other,” he said.

The Tata Trusts said it remains committed to an “orderly and timely leadership transition” at Tata Sons. The board, meanwhile, has backed Chandrasekaran for another five-year term, setting up a potential governance and legal dispute over the leadership of the Tata Group.