Tata Trusts rejects Tata Sons Board’s reappointment of Chandrasekaran; declares vote ‘void ab initio’
Tata Trusts said the affirmative support of Tata Trusts Nominee Directors as mandated by the Article of Association (AoA) was not given to the board to make any decision
Tata Trusts, the largest shareholder in Tata Sons, has challenged the board's decision to reappoint N. Chandrasekaran as chairman, stating that the vote was invalid from the outset. In a statement released on Sunday, the Trusts argued that the casting vote granted to its nominee directors was not utilized because the condition of an equality of votes was not met.
The Trusts maintain that the board's resolution to reappoint Chandrasekaran is void ab initio, meaning it has no legal effect. They emphasized that using the protective right conferred by the company's constitution to resolve a deadlock is not a deadlock itself, but rather the constitution operating as it was intended to. The Trusts insisted that the board's decision was not validly passed and therefore cannot be legally enforced.
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