New Delhi: Tata Sons Ltd’s board on Thursday approved a five-year extension for N. Chandrasekaran as chairman, inviting a quick response from the Tata Trusts, saying the appointment was illegal. Tata Sons is the principal holding and investment company of the Tata group of companies.“The resolution seeking to reappoint Mr N. Chandrasekaran in the board meeting today, with four directors voting in favour, and Mr Noel Tata, chairman of Tata Trusts, against, was a legal nullity in view of the provisions of the Articles of Association of Tata Sons,” said a statement from the trust.The statement said Noel Tata’s legal opinion obtained from Justice Dr D.Y. Chandrachud (former Chief Justice of India) regarding the correctness of the Trusts’ stand was not taken note of by the board.The Tata Sons board considered listing the company at the meeting where Chandrasekaran was re-appointed, but no resolution could be passed on the isse, Moneycontrol reported, citing a Tata source. However, other reports said the listing was approved in the Tata Sons board meeting.The listing decision follows the classification of Tata Sons as an upper-layer Non Banking Finance Company (NBFC) by the RBI in 2022, which maks it mandatory to list within three years.On September 12, the Reserve Bank of India rejected Tata Sons’ application to surrender its Core Investment Company registration, effectively closing the Tata Group holding company’s attempt to avoid a mandatory stock-market listing.The publication said that Noel Tata would seek to oust Chandrasekaran at the Annual General Meeting, citing the source.The Tata Trusts statement following the Tata Sons resolution re-appointing N. Chandrasekaran as chairman for five years after his term ends in February 2027.In its statement, Tata Trusts has said that it stands by its “considered position” that the chairman’s decision on August 12 this year, “not to offer himself for reappointment upon the conclusion of his current tenure on February 20, 2027, has been duly accepted and has attained finality”.It said that the re-appointment was also invalid because both nominee directors of the trust must concur on the proposal, and Noel Tata, one of the nominee directors, had voted against it, making it “legally void and without any basis”.Also read: Tata Sons is Losing its Chairman. It Can’t Afford to Lose its Way.Meanwhile, a report in NDTV says that the Tata Sons board cited appreciation by the Tata Trusts, in July 2025, of Chandrasekaran’s performance as chairman since 2017, and decided on that basis to extend his term beyond Febreuary 2027 “in principle”.“The board received from Tata Trusts their unanimous resolution dated July 28, 2025 expressing their appreciation of the Chairman of Tata Sons, Mr. N. Chandrasekaran (Chandra) for his stewardship of the Group from 2017 onwards. In recognition of these efforts the Tata Trusts resolved that he be re-appointed as Executive Chairman for a further term of five years upon the expiry of his current term,” said the Tata Sons statement.The statement mentions unanimous approval for Chandrasekaran to continue in his position beyond February 2027 until September 2025, which changed in February 2026, when the lack of unanimity led to deferrment of the proposal. “In subsequent board meetings in May 2026 and June 2026, this matter was discussed but was not resolved,” it says.“In view of the above, on August 12, 2026, Chandrasekaran opted not to offer himself for re-appointment upon the expiry of his current term,” says the statement.However, when the Nomination and Remuneration (NRC) committee of the Tata Sons board met on September 3, 2026, it decided, “in recognition of his contributions and the larger interests of the Tata Group,” to request him to reconsider his decision and to recommend him for re-appointment at the next board meeting.It says Chandrasekaran agreed to rethink his decision on September 17. “The board thereafter resolved by a majority vote to re-appoint him as Executive Chairman for a further term of five years upon the expiry of his current tenure,” says the statement.Tata Trusts owns about 66% of Tata Sons, making it the majority shareholder, represented by Noel Tata on the board.