Ketan Gaur, Partner at Trilegal told Times Now Digital, “from a corporate-law perspective, the proposal illustrates the tension between shareholder rights and board-level decision-making that now sits at the heart of the Tata Sons dispute. Tata Trusts, which holds approximately 66% of Tata Sons, can propose and seek approval for a corporate restructuring through the appropriate corporate processes, but the implementation of a regulated amalgamation cannot be achieved merely by shareholder preference. The Tata Sons board, the statutory approval process for the amalgamation and, critically, the RBI’s regulatory powers each have a distinct role. The fact that the restructuring may have certain consequence such as non-listing does not, by itself, make the restructuring impermissible; equally, the fact that it is legally permissible in principle does not mean that the RBI is bound to approve it.”
