Business
Archived — This article has been archived. The information may be outdated.
Chandrachud says Noel Tata no-vote voids 5-year extension
The Indian Express··18 Sept
Former Chief Justice DY Chandrachud told Tata Trusts that extending Tata Sons Chairman N Chandrasekaran for five years needed affirmative nominee-director votes. Noel Tata voted against the resolution while Venu Srinivasan backed it. Chandrachud said the majority-nominee requirement was unmet, so the resolution is invalid. He said a chairperson casting vote cannot replace that affirmative vote.
Prism
What It Means For You
- Under the opinion, Chandrasekaran's five-year extension does not stand without majority nominee support.
- Tata Trusts retain affirmative voting rights that a casting vote cannot override, Chandrachud wrote.
- Board process questions under Article 118 could affect how future chair reappointments are run.
What's Happening
- Of two Trusts nominees, only Srinivasan backed reappointment; Noel Tata voted no.
- Sir Dorab Tata Trust asked Srinivasan not to vote, but he rejected that direction and voted yes.
- Chandrachud said affirmative votes of a specified director class cannot be supplied by a casting vote.
What the Articles Require
- The opinion treats nominee affirmative votes as a standalone Articles requirement, separate from tied-board casting votes.
- Chandrachud said a casting vote cannot create a majority where the governing clause withholds one.
- He warned repeated incumbent reappointment without Article 118 process could sidestep Trusts' selection rights.
all-news
