In a letter sent to Noel Tata on Aug. 12, Tata Sons assured the trust's chairman that the board's decision to reappoint N Chandrasekaran as chairman for a third five‑year term was legally sound and aligned with the company's Articles of Association.
The communication cites three legal opinions, including those of former Supreme Court judges, to back the board's stance, the sources told Reuters.
The dispute erupted after the trust, which owns 66% of Tata Sons, alleged that the reappointment violated internal governance rules because it lacked majority support from nominee directors.
While the chairmanship itself does not require shareholder approval, Chandrasekaran's reappointment as a director still needs a majority vote, a hurdle that may be blocked by the Sir Dorabji and Sir Ratan Tata Trusts, whose combined 42% stake is expected to vote against the resolution.
The company's annual general meeting, originally scheduled for August, was adjourned because the quorum was not met; a Registrar of Companies extension will allow the AGM to be held no later than December, but the legal team of the trust is now reviewing the letter and may seek a court‑ordered meeting under Section 97 of the Companies Act.
A Tata supplier, who has delivered components for 15 years, said the delay has halted production lines, illustrating the broader impact of the crisis.