Mumbai: N Chandrasekaran has been reappointed as chairman of Tata Sons for another five-year term, but the decision could face further scrutiny over the voting process.
At the Tata Sons board meeting, Tata Trusts chairman Noel Tata opposed Chandrasekaran’s reappointment, while Trusts nominee Venu Srinivasan supported it. With the two nominee directors divided, independent director Harish Manwani used his casting vote to approve the resolution.
A legal opinion obtained by Tata Trusts from former Chief Justice of India D Y Chandrachud reportedly says a majority of the Trusts’ nominee directors must support the appointment separately. According to the opinion, a casting vote may not override that requirement.
The issue comes amid a broader disagreement over Tata Sons’ future structure. The board had decided in 2024 to keep the holding company unlisted, while Tata Trusts has also maintained that position.
The Reserve Bank of India recently rejected Tata Sons’ request to surrender its registration and directed it to comply with regulations applicable to an upper-layer NBFC.
Meanwhile, the Shapoorji Pallonji Group has proposed raising at least Rs 25,000 crore through partial monetisation of its Tata Sons stake.
The board has approved Chandrasekaran’s term, but questions over the validity of the voting process remain unresolved.