Why Tata Trusts has hired top lawyer Abhishek Manu Singhvi
What's the story
Tata Trusts has roped in senior advocate Abhishek Manu Singhvi to represent them legally, as the feud with Tata Sons intensifies. The move comes after N Chandrasekaran's reappointment as chairman and the holding company's support for listing. Singhvi, a highly regarded lawyer in India, expressed his sadness over the development given his close ties with late Ratan Tata, and familiarity with key players on both sides of the dispute.
Legal stance
'Fundamental rights of shareholder-owners cannot be nullified'
Singhvi stressed that the fundamental rights of shareholder-owners "cannot be nullified" in this case.
He warned that undermining these ownership rights could spell disaster for corporate governance in hundreds of Indian companies.
The senior advocate also referred to a previous Supreme Court ruling in the Tata-Mistry case, which he said clearly gave Tata Trusts primacy over its relationship with Tata Sons.
Dispute
Know about the ongoing tussle
On September 17, the board of Tata Sons voted to reappoint Chandrasekaran as chairman for another five years. This decision was opposed by Noel Tata, the Chairman of Tata Trusts.
The latter holds some 66% stake in Tata Sons and later termed the resolution "illegal" and a "legal nullity."
The two parties are also at loggerheads over a possible listing of Tata Sons after RBI rejected its request to relinquish its Core Investment Company registration.