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Tata Trusts and Tata Sons Prepare for Control Battle

Tata Trusts and Tata Sons Prepare for Control Battle
Tata Trusts and Tata Sons prepare for legal battle over Tata Group control · thehindubusinessline.com

Tata Trusts and Tata Sons are having a disagreement about who should guide the Tata Group.

Tata Trusts owns most of Tata Sons, the company that helps oversee the group.

Tata Sons’ directors voted to extend N. Chandrasekaran’s time as chairman.

They also moved toward possibly listing Tata Sons on the stock market.

Noel Tata and Tata Trusts say the chairman’s extension was illegal.

Tata Sons’ advisers say the company should become public and operate with more transparency.

Both sides have hired well-known lawyers and senior courtroom advocates.

The disagreement could eventually be taken to court, although both sides would prefer to avoid a long legal fight.

Key facts

Tata Trusts ownership
Tata Trusts owns 66% of Tata Sons.
Immediate trigger
Tata Sons directors voted to extend N. Chandrasekaran’s tenure.
Potential corporate action
Tata Sons is moving toward a possible public listing.
Tata Trusts’ position
Tata Trusts called Chandrasekaran’s tenure extension “illegal.”
Trusts’ legal advisers
Cyril Amarchand Mangaldas and senior advocates including Aspi Chinoy, Janak Dwarkadas, Abhishek Manu Singhvi and Mukul Rohatgi.
Tata Sons’ legal advisers
Anagram Partners, senior advocate Harish Salve and senior advocate Ravi Kadam, among others.
Reported status
The parties would prefer to avoid a lengthy legal fight but are preparing for one.

Quotes

Abhishek Manu Singhvi

Senior advocate retained by Tata Trusts and Noel Tata

“Rupturing the over hundred years of Tata Trust and Tata Sons established hyphenated relationship and divorcing one from the other seems unthinkable.”
thehindubusinessline.com

Sources

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