India, Sept. 21 -- The reappointment of N Chandrasekaran as Tata Sons chairman has triggered a major corporate governance dispute after Tata Trusts challenged the validity of the company board's September 17 decision.

The Tata Sons board approved a fresh five-year term for Chandrasekaran by a 4:1 vote. However, Tata Trusts, which holds about 66% of Tata Sons, says the overall board majority does not settle the matter because the company's Articles of Association (AoA) impose a separate requirement involving directors nominated by the Trusts.

At the September 17 meeting, Tata Trusts Chairman Noel Tata voted against Chandrasekaran's reappointment, while the other Trust-nominated director, Venu Srinivasan, supported it. Tata Trusts argues ...