Abhishek Manu Singhvi, counsel for Tata Trusts, has publicly opposed the Tata Sons board's decision to reappoint N Chandrasekaran as chairman, a resolution passed on May 15. The board, which had 24 members, voted 18‑6 in favor of the reappointment. Noel Tata, the trust’s chairman, cast the sole dissenting vote, arguing the move violated the trust’s 66‑percent ownership and philanthropic mandate. He warned that the board was acting without the consent of the majority shareholder.
Singhvi’s legal brief stresses that Tata Trusts, as the founder trust, retains primacy in governance, a principle enshrined in the 1951 Tata Trusts Act. He cited Jamsetji Tata’s vision that dividends and profits must funnel into philanthropic objectives, not private hands. The lawyer warned that ignoring the trust’s objections could set a dangerous precedent for corporate governance in India.
The dispute has already attracted the attention of the Delhi High Court, where Tata Trusts intends to file a petition challenging the board’s resolution. If the court dismisses the petition, the reappointment could stand, but the trust has argued that the board’s action violated the trust’s majority stake and fiduciary duties. Industry analysts suggest that a verdict could reshape how majority shareholders interact with independent boards. Some board members fear a prolonged legal battle could tarnish Tata Group’s reputation ahead of its planned public listing.
Tata Trusts aims to file its petition by June 5, seeking immediate injunction to halt the reappointment. Meanwhile, Noel Tata remains silent on the upcoming court hearing, focusing instead on protecting the group’s legacy.