Tata Sons and Trusts dispute heads toward legal showdown

A governance dispute between Tata Sons and Tata Trusts over the reappointment of chairman N Chandrasekaran is increasingly headed for the courts, with two of India's most prominent senior advocates now representing opposing sides. Harish Salve is understood to be advising Tata Sons and Chandrasekaran, while Abhishek Manu Singhvi has been appointed to represent Tata Trusts. The conflict stems from a September 17 board resolution approving a further five-year term for Chandrasekaran in a 4-1 vote. Chandrasekaran had said in August that he would not seek another term, but agreed to reconsider after the board's nomination and remuneration committee asked him to continue. Noel Tata, chairman of Tata Trusts, which holds about 66 percent of Tata Sons, voted against the resolution. Trusts nominee Venu Srinivasan voted in favour. In a statement issued on Sunday, Tata Trusts said the September 17 resolution is void ab initio. It argued that Article 121 of Tata Sons' Articles of Association requires the affirmative vote of a majority of Trust-nominated directors, and that a casting vote applies only where board votes are equal.