Mumbai: A major battle broke out in India’s largest business group after the Tata Sons board decided to grant a five-year extension to chairman N. Chandrasekaran and publicly list the company despite Tata Trusts chairperson Noel Tata’s objection.
Tata Trusts, which controls 66 per cent stake in Tata Sons, came out strongly against Chandrasekaran’s reappointment, challenging the validity of the decision and declaring that it will continue the process to find a new chairman.
Noel Tata told Moneycontrol that he considered the vote “illegal”, challenging the validity of a decision that could have significant implications for the leadership of India’s largest business group.
“I voted against Chandra’s appointment as chairman. My veto was wrongfully overridden on the basis of a legal opinion. The decision is illegal. I recorded my dissent,” Noel Tata told Moneycontrol on Thursday.
During a nearly four-hour-long board meeting, the six-member board of Tata Sons reappointed Chandrasekaran for five years starting February 21.
“At the meeting of the board on September 17, 2026, Chandra acceded to the board’s request to reconsider his decision. The board thereafter resolved by a majority vote to re-appoint him as executive chairman for a further term of five years upon the expiry of his current tenure,” Tata Sons said in a statement.
Trustee Venu Srinivasan, along with four other board members, voted in favour of Chandrasekaran’s reappointment, disregarding Noel’s opposition.
Tata Trusts rejected the appointment straightaway.
“The resolution seeking to reappoint Mr. N. Chandrasekaran in the board meeting today, with four directors voting in favour, and Mr Noel Tata against, was a legal nullity in view of the provisions of the Articles of Association of Tata Sons,” Tata Trusts said in a statement.
“The process for appointing a Chairman under the Article of Association requires a majority of the Trusts’ Nominee Directors voting in favour of the resolution. That process applies equally to a first appointment and to reappointing someone who already holds the office. The Board, accordingly, cannot lawfully hold a meeting or pass a resolution on the Chairman’s appointment or reappointment unless both nominee directors are present, and cannot validly pass such a resolution unless both nominee directors vote in favour. Given that Mr Noel Tata, being one of the Trust nominee directors, voted against the proposal, it was rendered legally void and without any basis,” Tata Trusts pointed out.
Noel had voiced his objection to Chandra’s reappointment in February. On Thursday, Tata Sons board relied on a resolution sent in by Tata Trusts last year to back Chandrasekaran.
“The Board (Tata Sons) received from Tata Trusts their unanimous resolution dated July 28, 2025 expressing their appreciation of the chairman of Tata Sons, Mr N. Chandrasekaran (Chandra) for his stewardship of the Group from 2017 onwards. In recognition of these efforts the Tata Trusts resolved that he be re-appointed as Executive Chairman for a further term of five years upon the expiry of his current term. Subsequently, in September 2025, the Board of Tata Sons agreed in principle to re-appoint Chandra as Executive Chairman for a further term of five years,” Tata Sons stated.
Last month, Chandrasekaran had said he won’t seek a third term after not finding support from Noel when a proposal for his reappointment was first discussed at the board meeting in February.