‘No Company Can Function In Deadlock’: Harish Salve On Tata Sons-Tata Trusts Governance Tussle | Exclusive

Last Updated:September 18, 2026, 17:07 IST

Salve also said that a public listing of Tata Sons would enhance corporate transparency and establish a far clearer operational structure

Salve emphasised that directors are legally bound to act in the best interests of the company and all its stakeholders, rather than serving as mere proxies for controlling trusts. File image/PTI

Senior advocate and former Solicitor General of India Harish Salve has weighed in on the intensifying governance tussle between Tata Sons and Tata Trusts, asserting that a public listing of Tata Sons would enhance corporate transparency and establish a far clearer operational structure. Speaking exclusively with Rahul Shivshankar on CNN-News18, the top jurist questioned the pushback against going public, suggesting that opposition to listing points to underlying private ambitions rather than sound corporate governance.

Addressing the central debate over the potential listing of Tata Sons, Salve stated that if bringing the conglomerate’s holding company to the public markets offers greater institutional clarity and regulatory oversight, the move should be welcomed rather than resisted. He noted that maintaining an opaque structure amid high-stakes boardroom friction only elevates governance risks, adding that reluctance to embrace listing raises obvious questions about individual interests within the leadership ecosystem.

The discussion also zeroed in on the legal validity of the Tata Sons board resolution regarding N Chandrasekaran’s reappointment and whether a casting vote can be legitimately deployed to override a division. Firmly rejecting the idea of operational stalemate, Salve declared that no corporate entity can function in a state of permanent deadlock. He pointed out that reliance on procedural manoeuvres like casting votes to navigate structural divides highlights the exact systematic risks that the Reserve Bank of India has consistently warned against regarding upper-layer core investment companies.

When questioned on the precise constitutional status and fiduciary duties of Tata Sons’ Board of Directors, Salve emphasised that directors are legally bound to act in the best interests of the company and all its stakeholders, rather than serving as mere proxies for controlling trusts. With regulatory pressures mounting and internal tensions spilling into the public domain, Salve’s commentary underscored the urgent need for a robust legal resolution to safeguard institutional integrity.

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What is Harish Salve’s view on the public listing of Tata Sons?

Harish Salve stated that a public listing of Tata Sons would enhance corporate transparency, establish a clearer operational structure, and provide greater institutional clarity and regulatory oversight.

How did Harish Salve address the issue of boardroom deadlocks at Tata Sons?

Salve firmly rejected the idea of operational stalemate, declaring that no corporate entity can function in a permanent state of deadlock and noting that procedural manoeuvres highlight risks warned against by the RBI.

What did Harish Salve emphasize regarding the fiduciary duties of Tata Sons directors?

Salve emphasized that the board of directors is legally bound to act in the best interests of the company and all its stakeholders, rather than serving merely as proxies for controlling trusts.

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