India, Sept. 18 -- Tata Sons' board on Thursday voted to reappoint N Chandrasekaran as executive chairman for a further five-year term, but Tata Trusts, the group's majority shareholder, immediately declared the resolution invalid, escalating a leadership dispute that has simmered inside the conglomerate for more than a year. The dramatic reversal of events unfolded at the nearly three-hour-long board meeting.

For one, Chandrasekaran, 63, last month intimated his intention not to seek reappointment when his current term ends on February 20, 2027, after the board failed repeatedly to reach unanimity on renewing him. The board leaned on the trusted Chandra, as he is known, after the Reserve Bank of India rejected the holding company's bid ...