Noel Tata Calls Chandrasekaran's 5-Year Reappointment Illegal as Tata Sons Listing Fight Deepens
Updated
Updated · CNBC · Sep 18
Noel Tata Calls Chandrasekaran's 5-Year Reappointment Illegal as Tata Sons Listing Fight Deepens
3 articles · Updated · CNBC · Sep 18
Summary
Tata Sons approved N. Chandrasekaran for another five years, but Noel Tata rejected the vote and Tata Trusts called the decision a legal nullity because its chair did not approve it.
The clash centers on strategy: Chandrasekaran needs fresh capital for Air India, semiconductors and electronics, while Noel Tata wants to keep Tata Sons private to protect Tata Trusts' control.
290 billion rupees a year is needed to support loss-making businesses, plus 900 billion rupees for a semiconductor plant, against a little over 300 billion rupees in dividend income.
RBI last week rejected Tata Sons' bid to surrender its Core Investment Company registration, tightening pressure for a mandatory listing that Tata Trusts says could weaken its 66% holding.
Tata Trusts proposed buying Shapoorji Pallonji Group's 18% stake for 250 billion rupees over 18 months, underscoring how the board fight is also a battle over ownership.