Business Economy


No legal requirement to give video of Tata Sons Board meeting to Noel Tata

Mumbai, Oct 3 (UNI) Corporate lawyers familiar with the Tata Trusts and Tata Sons imbroglio stated here today that there is no legal requirement to provide Tata Trusts Chairman Noel Tata with a video recording of the September 17 Tata Sons board meeting, which took the decision to give N Chandrasekharan a third term as Tata Sons Chairman.
According to the law, a director has no unfettered right to obtain the full copy of the video recording of the board meeting, the counsels said.
However, company secretarial guidance and corporate governance measures indicate that the director may be allowed to view specific recordings briefly to verify the discussion and give comments, if any, in order to draft minutes of the board meeting before they are finalised, sources said.
Earlier, Tata Trusts Chairman Noel Tata had questioned the process followed during the Tata Sons board meeting on September 17.
According to sources, Noel Tata also questioned the legal opinions obtained after the meeting and sought details about how the decision was taken and why legal advice was sought after the resolution, after which he asked the Tata Sons board to provide the minutes and video recording of the September 17 meeting.
Noel Tata also called out the manner in which the Tata Sons board submitted two legal opinions to validate Chandrasekaran’s reappointment after the meeting in which the decision was taken.
Noel Tata said he was not given an adequate opportunity at the meeting to detail specific points from the legal view he had obtained from former Chief Justice of India D Y Chandrachud, sources said.
Noel Tata stated that the resolution was passed off as a "debrief from the nomination and remuneration committee (NRC)”, which gave no clue that the reappointment of Tata Sons Executive Chairman N Chandrasekaran for a third term was listed on the agenda to be discussed, sources said.

Sources further said that Noel Tata wanted to raise the points on casting vote and Tata Sons’ Articles of Association (AoA) which, according to him, ought to be read in context of the original contents of the AoA and the changes made over a period of time.
Noel Tata had tabled the legal view of Justice D Y Chandrachud before the Tata Sons board on September 17 and argued that the casting vote of the Tata Sons chairman could not be used to override the specific affirmative voting rights provided to nominee directors of Tata Trusts, sources added.
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