Tata boardroom battle intensifies as trusts contest chair reappointment and listing plan

The board of Tata Sons approved a third term for executive chairman N Chandrasekaran, but nominee director Noel Tata voted against the resolution and declared it a legal nullity, citing a governance protocol adopted by the trusts in October 2024 that requires nominee directors to follow trustees’ advice. The Tata Trusts, which control about two‑thirds of Tata Sons, have challenged the board’s decision and also opposed the Reserve Bank of India’s requirement that the holding company be publicly listed.

In response, Noel Tata suggested splitting Tata Sons into multiple entities to sidestep the listing mandate, while the Shapoorji Pallonji Group, a minority shareholder, has favoured a listing to facilitate its exit. The board has dismissed the trusts’ claim, relying on a simple‑majority rule, and the dispute has prompted other Indian conglomerates to review their shareholder agreements.