3 hrs ago
Harish Salve Advises Tata Chairman Amid Trusts Governance Row
Harish Salve is a senior lawyer advising Tata Sons Chairman N Chandrasekaran.
Tata Sons and Tata Trusts are having a disagreement about how the company should be governed.
The Reserve Bank of India says Tata Sons must follow rules for Core Investment Companies.
Salve said Tata Sons must become a public company to meet those directions.
Tata Sons had argued that it no longer needed this status after repaying its loans in 2019.
The RBI did not accept that argument because companies controlled by Tata Sons still had loans.
Tata Trusts also questioned whether Chandrasekaran’s reappointment was properly approved.
Salve is well known for representing India in the Kulbhushan Jadhav case and for handling major tax and business disputes.
He was formerly India’s Solicitor General and received the Padma Bhushan.
Senior advocate Harish Salve is advising Tata Sons Chairman N Chandrasekaran amid governance differences with Tata Trusts.
Salve said Tata Sons must comply with Reserve Bank of India rules for Core Investment Companies and become a public company.
Tata Sons had argued that repaying its loans in 2019 removed the need for Core Investment Company registration, but the RBI reportedly rejected that position.
Tata Trusts challenged Chandrasekaran’s reappointment, arguing it lacked sufficient support from Trust-nominated directors under the company’s Articles of Association.
Salve’s landmark cases include India’s Kulbhushan Jadhav case at the International Court of Justice, Vodafone’s tax dispute, and the Reliance gas dispute.
- Who
- Harish Salve, N Chandrasekaran, Tata Sons, Tata Trusts, and the Reserve Bank of India are central to the dispute.
- What
- Salve is advising Chandrasekaran amid a governance dispute involving Tata Sons, Tata Trusts, and RBI regulatory directions.
- Where
- The dispute concerns Tata Sons and Indian regulatory requirements; Salve practices at the Supreme Court of India and has represented clients in India and internationally.
- When
- The current dispute is ongoing; the article also references Salve’s earlier appointments and landmark cases from 2009, 2012, 2015, and 2019.
- Why
- The disagreement involves Tata Sons’ required compliance with Core Investment Company rules, a proposed public listing, and Tata Trusts’ challenge to Chandrasekaran’s reappointment.
Tata Sons and Regulatory Compliance
Tata Trusts and Governance Objections
Core Investment Company status
Tata Sons and Regulatory Compliance
Tata Sons had taken the position that repaying its loans in 2019 meant it no longer needed to be registered as a Core Investment Company.
Tata Trusts and Governance Objections
The Reserve Bank of India did not accept that position, citing loans held by companies in which Tata Sons has majority stakes.
Public listing
Tata Sons and Regulatory Compliance
Tata Sons has proposed a public listing to comply with RBI directions, and Salve said becoming a public company is the essential requirement.
Tata Trusts and Governance Objections
The issue remains contentious because legal questions involving shareholder rights and board approvals must be clarified.
Chandrasekaran’s reappointment
Tata Sons and Regulatory Compliance
Tata Sons and its advisers maintain that the chairman’s reappointment is part of the company’s governance process.
Tata Trusts and Governance Objections
Tata Trusts challenged the reappointment, arguing that it was invalid because it lacked sufficient support from Trust-nominated directors under the Articles of Association.
Key facts
- Adviser
- Harish Salve is advising Tata Sons Chairman N Chandrasekaran.
- Regulatory issue
- The Reserve Bank of India requires Tata Sons to comply with rules applicable to Core Investment Companies.
- Tata Sons position
- Tata Sons had argued that repaying its loans in 2019 meant it no longer needed Core Investment Company registration.
- Proposed action
- Salve said Tata Sons must become a public company.
- Trusts’ challenge
- Tata Trusts argued that Chandrasekaran’s reappointment lacked sufficient support from Trust-nominated directors.
- Public office
- Salve served as Solicitor General of India from 1999 until returning to private practice in November 2002.
- Honour
- He received the Padma Bhushan in 2015.
Quotes
Harish Salve
Senior advocate and former Solicitor General of India advising Tata Sons Chairman N Chandrasekaran
“One important thing is they have to turn into a public company. That’s all that there is to it”
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Sources
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