Legal experts back extension of N. Chandrasekaran as Tata Sons chairman

Legal Support

Legal opinions obtained by Tata Sons support the validity of N. Chandrasekaran's reappointment as chairman for a third five-year term. The opinions state that the company rule requiring a Selection Committee applies only to choosing a new chairman, and not to extending the term of a current one.

Expert Opinions

Former Supreme Court judges Justice B.N. Srikrishna and Justice Uday U. Lalit stated that the casting vote used by the chairman of the Tata Group board was valid under the company rules. Justice Srikrishna said the action matches Article 121, while Justice Lalit noted that an equality of votes among certain directors gave the chairman the right to use a casting vote. The September 17 board resolution giving Mr. Chandrasekaran a third term followed the same pattern as his second term extension in 2022.

Boardroom Conflict

Meanwhile, Tata Trusts, which owns about 66% of Tata Sons, challenged the September 17 board resolution. The trusts argue that the company rules need positive support from a majority of trust-nominated directors, and a chairman's casting vote cannot overrule that condition. However, Tata Trusts denied any deadlock at the September 17 board meeting while disputing the casting vote mandate.