Noel Tata challenges Chandrasekaran’s reappointment as Tata Sons chairman, calls resolution void

Noel has argued that the reappointment was taken up out of turn and was not part of the meeting’s agenda, the sources said. According to his contention, the meeting was meant to include a debriefing from the nomination and remuneration committee, rather than a decision on Chandrasekaran’s reappointment for another five years. The challenge brings into the open a disagreement over the process followed by the Tata Sons board in approving a fresh term for Chandrasekaran, who has led the group since 2017.

Noel had opposed the reappointment when the resolution was put to a vote at the September meeting. Venu Srinivasan, the other Tata Trusts nominee on the Tata Sons board, voted in favour of the resolution, siding with the majority. Other directors who supported Chandrasekaran’s reappointment included Anita George, Harish Manwani and Saurabh Agarwal. Tata Trusts, which Noel chairs, collectively hold about two-thirds of Tata Sons, making the position of its nominee directors significant in decisions concerning the holding company.

In his letter, Noel has also argued that Tata Sons’ Articles of Association require the affirmative vote of Tata Trusts’ nominee directors for a resolution to be passed. His objection raises questions about the validity of the reappointment in light of the split among the two Trusts nominees at the September meeting. Noel has sought an unedited video recording of the board meeting as part of his challenge, the sources said.

Moneycontrol has written to both Tata Trusts and Tata Sons seeking comment on the matter, and the story will be updated if there is a response. The dispute centres on the governance of Tata Sons, which controls the group’s principal operating companies across businesses ranging from automobiles and steel to information technology and consumer products. Any sustained disagreement between Tata Trusts and the Tata Sons board could have implications for the group’s leadership and decision-making at the holding-company level.