Tata Sons keeps N Chandrasekaran despite Tata Trusts lacking support
Business
Tata Sons is sticking with N Chandrasekaran as chairman for a third term, even though Tata Trusts, which own most of the company, were not on board.
The board made the call on September 17, and to back it up, they got legal support from two former Supreme Court judges.
Legal experts defend chairman's casting vote
The main issue: Tata Trusts argued that not enough of their nominated directors supported the move and that using a casting vote was not fair.
But legal experts said the chairman's tie-breaking vote is valid when things are split, and directors should put the company first, even over those who nominated them.