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In a fresh new turn, the Tata Trusts has challenged the validity of Tata Sons’ September 17 decision to reappoint N. Chandrasekaran as chairman. The trust says in its latest statement that the company’s Articles of Association require affirmative support from a majority of its trust-nominated directors and that a chairman’s casting vote cannot override that condition.

The 158-year-old Tata Group is no stranger to corporate battles. It also has a history of winning them.

When Ratan Tata inherited the chairmanship from J.R.D. Tata in 1991, he faced some of the most powerful corporate satraps India had ever produced. Russi Mody at Tata Steel, Darbari Seth at Tata Chemicals and Tata Tea, and Ajit Kerkar at Indian Hotels commanded enormous influence and often ran their companies with considerable autonomy as chairmen of their respective boards. The first decade of Ratan Tata’s leadership was spent consolidating authority, creating a unified group structure, raising stakes in Tata-listed entities, and establishing himself as the unquestioned centre of power.

It was neither easy nor bloodless but Ratan Tata prevailed. By the time he stepped down, the Tata Group spoke with one voice.

Then came the ouster of Cyrus Mistry in October 2016, personally supervised by Ratan Tata, who ran the group with an iron hand. The long legal battle that followed ended with Mistry ultimately losing.

Today, less than two years after Ratan Tata’s death, the Tata Group is facing yet another period of strain.

The dispute over executive chairman-turned-rebel N. Chandrasekaran’s reappointment, the RBI’s handling of Tata Sons’ application to exit the upper-layer non-banking-financial-corporation framework, the prospect of a mandatory listing, and the unresolved position of the Shapoorji Pallonji Group’s stake in Tata Sons have combined to create one of the most significant challenges in the history of the Tata Group.

Noel Tata’s challenges

At the centre of this storm stands Noel Tata, scion of the Tata family. For decades, Noel Tata remained outside the glare of public attention – thanks largely to Ratan Tata’s dislike of his half-brother.

Now, as chairman of Tata Trusts, the controlling shareholder of Tata Sons, Noel Tata occupies the most influential position in the Tata ecosystem. The coming months will determine not only the future of Tata Sons but also Noel Tata’s legacy as a leader.

While the immediate trigger for the latest controversy has been the reappointment of N. Chandrasekaran and listing of Tata Sons – the holding company of the Tata group, what makes the episode remarkable is that Noel Tata first faced a rebellion from members of........

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