The Tata Trusts are consulting legal experts to examine the possibility of including a clause in the trust deeds to the effect that the same person cannot head them as well as holding company Tata Sons, while honouring the wills of the founders. This is part of a significant corporate governance exercise, which includes succession planning.
Against this background, Sujjain Talwar, Co-founding Partner at Economic Laws Practice (ELP) has been quoted by The Economic Times in their article titled ‘Tata Trusts takes legal opinion on Trust deed changes’. He says, “In company law, the chairman is simply first among equals, when it comes to meetings of the board or shareholders. He or she has no power or duties that are different to those of other directors, so merely by restricting the chairmanship, but permitting a person to be a director, does not alter anything in law. There may be changes as a result of this but nothing material from a legal perspective.”
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