Tata Trusts chairman Noel Tata calls Chandrasekaran's reappointment ‘illegal’, cites Tata Sons' rules

Noel Tata voted against Chandrasekaran’s reappointment, but the resolution was approved by a majority of the Tata Sons board.

Published on: Sep 17, 2026, 17:39:56 IST

By HT News Desk

Prefer HTon Google

Share via

Copy link

After Tata Sons approved a fresh five-year term for N Chandrasekaran as executive chairman, Tata Trusts issued a statement saying it maintains that the resolution to reappoint Chandrasekaran “is illegal”. Tata Trusts chairman Noel Tata reiterated the same position during the Tata Sons board meeting, according to the statement.

Tata Sons Chairman Natarajan Chandrasekaran (left) and Tata Trusts Chairman Noel Tata.

Noel voted against Chandrasekaran’s reappointment, but the resolution was approved by a majority of the Tata Sons board.

Tata Trusts said the resolution was a “legal nullity” in view of the provisions of the Articles of Association of Tata Sons. According to the statement, the process for appointing a chairman requires a majority of the Trusts’ nominee directors to vote in favour of the resolution. It said the same process applies to both the first appointment of a chairman and the reappointment of an existing chairman.

The statement further said the board cannot lawfully hold a meeting or pass a resolution on the chairman’s appointment or reappointment unless both Trust nominee directors are present.

It also said such a resolution cannot be validly passed unless both nominee directors vote in favour. Since Noel Tata, one of the Trust nominee directors, voted against the proposal, Tata Trusts said the resolution was rendered legally void and “without any basis”.

In a separate statement, Noel Tata said the resolution to reappoint Chandrasekaran would require the board to disregard three factors: Chandrasekaran’s own stated decision, the acceptance of that decision by the majority shareholder, and the subsequent process that the shareholder had asked Tata Sons to initiate.

“A resolution now for re-appointment moved at this meeting would therefore ask this Board to set aside three things at once: the Chairman's own stated decision, the acceptance of that decision by the majority shareholder, and the further process which that shareholder has asked this Company to set in motion," Noel said via a statement.

ABOUT THE AUTHOR
HT News Desk
Follow the latest breaking news, major developments and agenda-setting stories from India and around the world with the newsdesk at Hindustan Times. Operating round the clock, the desk brings together experienced editors, reporters and correspondents to deliver fast, accurate and contextual reporting across subjects that influence public policy, governance, business, society and international affairs. The HT News Desk covers politics, elections, government policies, the economy, business and markets, science and technology, the environment, law and order, infrastructure, education, climate issues and geopolitics, while closely tracking developments across states, institutions and global capitals. The team also leads coverage of major breaking news events, policy announcements, court proceedings, natural disasters, public emergencies and significant international developments. Reports published by the newsdesk are based on information gathered from reporters on the ground, official statements, government agencies, court records, regulatory filings, recognised institutions and other authoritative sources. Stories undergo editorial scrutiny and verification processes to ensure accuracy, fairness and relevance, and are updated as events evolve and additional information becomes available. Whether covering a key political decision in New Delhi, an economic policy shift affecting millions, a landmark court ruling or a major global event, the HT News Desk aims to provide readers with reliable, fact-based journalism that delivers not only the latest developments but also the context and analysis needed to understand their wider implications.Read More

Stay updated with the latest Business News, stock market updates, petrol and diesel prices, gold and silver rates, income tax updates and major developments from India and across the world.