Tata Trusts oppose N Chandrasekaran 5 year extension, cite AoA
Tata Trusts aren't on board with N Chandrasekaran getting another five years as Tata Sons chairman.
They say the board's decision skipped a key step: getting most of the Trust-nominated directors to agree, which is required by company rules.
This all ties back to the Articles of Association (AoA) the Supreme Court upheld in the famous Cyrus Mistry case.
Trusts challenge Tata Sons tie breaking
The heart of the issue is how votes are counted under Tata Sons's articles of association (AoA).
According to Tata Trusts, just using a chairman's tie-breaking vote isn't enough: you still need a majority from their nominated directors.
With one of the two Trust nominees voting against the resolution, that condition was not met.
The Trusts are standing firm that these rules can't be brushed aside, even for big decisions like this.