Chandra's third term: Why Tata Trusts and Tata Sons read rules differently

A board vote at Tata Sons has sparked a legal battle over the reappointment of N Chandrasekaran as chairman. According to Business Standard, the vote was 4:1 in favour of Chandrasekaran's reappointment, but Tata Trusts, which holds about 66% of Tata Sons, has opposed the move.

Tata Trusts chairman Noel Tata has suggested exploring a restructuring exercise, including potentially splitting Tata Sons into several entities, as an alternative to listing the conglomerate's holding company to meet Reserve Bank of India (RBI) requirements, The Economic Times reports. The Trusts want Tata Sons to remain unlisted and have been exploring options to meet RBI requirements without going public.

Tata Trusts has appointed Senior Advocate Abhishek Manu Singhvi to represent it in opposing Chandrasekaran's reappointment and the proposed listing of Tata Sons, Live Mint reports. The Trusts argue that the board resolution reappointing Chandrasekaran was invalid since it did not receive the necessary support from both Trust-nominated directors, as required by Tata Sons' Articles of Association.

Brief written by urgent.news from Business Standard IN, The Economic Times, Live Mint — 3 reports on this story. Machine-written — may contain errors; check the original before relying on it.