Tata Sons Leadership Battle: Why Article 118 Has Become Crucial for Chandrasekaran

The Tata Sons board has approved N. Chandrasekaran’s reappointment as Chairman for another five-year term. (File Photo)

The leadership dispute at Tata Sons has brought Article 118 of the company’s Articles of Association (AoA) into focus, with Tata Trusts chairman Noel Tata questioning the validity of N Chandrasekaran’s reappointment for a third five-year term.

The Tata Sons board approved Chandrasekaran’s reappointment on September 17, 2026, in a 4:1 vote, despite Noel Tata opposing the resolution. Venu Srinivasan, the other Tata Trusts nominee on the board, voted in favour, after which independent director Harish Manwani exercised his casting vote. Tata Trusts has argued that the resolution was invalid because it lacked the required affirmative support from its nominee directors, while Tata Sons has defended the decision, citing legal opinions that support its interpretation of the company’s rules.

The controversy gained another dimension after Tata Sons’ statutory filing, submitted to the Registrar of Companies in October, omitted specific references to Articles 118 and 105, unlike the resolution passed for Chandrasekaran’s second term in 2022.

Dikshat Mehra, Partner at Rajani Associates, told Times Now Digital that the Article 118 cannot be interpreted in isolation and must be read alongside the company’s Articles of…

Original source: https://www.timesnownews.com/business-economy