Tata Sons rejects Noel’s no, Chandra call valid

Mumbai: Tata Sons dismissed objections raised by Noel Tata, chairman of Tata Trusts, regarding the reappointment of N Chandrasekaran as chairman of Tata Sons. The board of Tata Sons approved the reappointment by a majority and did not deem the special procedure under Article 118 of their Articles of Association (AoA) applicable to the situation.

Tata Sons also clarified that the board's decision to reappoint Chandrasekaran as chairman upon the expiration of his tenure was valid in accordance with applicable law and the company's AoA. The dispute involves Article 118 of the AoA, which outlines a specific process for selecting a new chairman when Tata Trusts collectively hold at least 40% of the company's paid-up ordinary share capital.

However, Tata Sons argued that the procedure under this article does not apply to Chandrasekaran's reappointment. The company also mentioned that the board would circulate their legal opinion supporting the majority decision before issuing a press release. Additionally, Tata Sons addressed the company's annual general meeting (AGM), which was adjourned due to a lack of quorum.

The AGM was ineffectively linked to the failed meeting, and the board rejected any suggestion that the September 17 board resolution should be tied to the AGM's failure. The company further stated that a general meeting would be convened under Section 152 of the Companies Act, 2013 to consider Chandrasekaran's continued position as a director.