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The assurance comes amid a boardroom tussle over leadership and control that has erupted at the Tata Group, with Tata Sons chairman N Chandrasekaran and Tata Trusts chairman Noel Tata at the centre of a dispute that could reshape decision-making at the $185-billion conglomerate.
The conflict has exposed tensions within the group’s unusual ownership structure. Tata Trusts owns 66% of Tata Sons, the unlisted holding company, but its representation on the board is limited to one-third of the total strength, raising questions over whether the board can override the position of the majority shareholder.
Noel Tata and TVS Motor Company chairman Venu Srinivasan are the Trusts’ nominees, but they have taken opposing positions on key issues. Noel has not favoured a third term for Chandrasekaran, who took charge in 2017 after Cyrus Mistry’s ouster. Srinivasan, however, has backed Chandrasekaran’s reappointment.
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The proposed listing of Tata Sons has also become a point of disagreement. Noel has publicly expressed reservations about a listing, while Srinivasan, who was earlier opposed, now supports it.
The leadership dispute took a significant turn after Chandrasekaran did not offer himself for reappointment on August 12, ahead of his term ending on February 20 next year. Just over a month later, the Tata Sons board reappointed him.
Four board members backed the decision, while Noel opposed it. Tata Trusts subsequently termed the appointment illegal, raising the possibility of a legal battle. Abhishek Manu Singhvi is representing the Trusts, while Harish Salve is appearing for Tata Sons.
The contest marks a departure from the group’s earlier internal power struggles, including those involving Ratan Tata and senior executives Russi Mody, Ajit Kerkar and Darbari Seth. Chandrasekaran, meanwhile, was handpicked by Ratan Tata for the top job.