Tata Sons tension over casting vote and N Chandrasekaran's chairmanship
There has been some boardroom tension at Tata Sons over whether N Chandrasekaran should stay on as group chairman.
The big issue? Article 121, a rule that says certain decisions approved by a board majority also need the approval of a majority of Tata Trusts's nominees.
Things got heated when the chairman's casting vote was used.
Lalit and Srikrishna clarify Tata voting
After Tata Trusts pushed back, saying all their nominees had to agree, Tata Sons turned to top legal minds for clarity.
Former Chief Justice UU Lalit was quoted only on the equality of votes under Article 104(B) and the casting vote satisfying Article 121, while former Supreme Court judge BN Srikrishna said directors have to put the company first, not just represent those who picked them.
Additionally, the casting vote was exercised because there was "equality of votes amongst the Directors appointed pursuant to Article 104B," and this satisfied the requirement under Article 121.