Tata Group Sees Legal Battle Looming Over Chairman Appointment

The tussle between Tata Trusts and Tata Sons is clearly visible after the re-appointment of N Chandrasekaran and protests by Noel Tata. The rest of the Tata Group members have re-appointed N Chandrasekaran, while Noel Tata voted against him. Meanwhile, Bloomberg reports that a vote of 4: 1 approves the re-appointment of N Chandrasekaran as chairman. Meanwhile, there could be a legal battle between Tata Trusts and Tata Sons. Noel Tata could challenge the decision in court. Both camps are mobilising lawyers. Tata Trusts says the proposal to re-appoint N Chandrasekaran as chairman of Tata Sons is legally invalid. Tata Trusts contends that it has not received the mandatory support of both directors nominated by the trust. Tata Trusts further states that the 4: 1 total vote was invalid, as one of its two nominees opposed the proposal, thereby creating a separate Articles of Association of the Tata Group. Tata Trusts does not have the full ownership of the two directors, as per the 66% ownership of the Tata Trusts.