Tata Sons Board Extends Chandrasekaran’s Term by Five Years
Board also approves steps towards listing Tata Sons; Noel Tata opposes reappointment and listing proposals
GG News Bureau
Mumbai, 18th Sept: The Tata Sons board has approved a fresh five-year term for N. Chandrasekaran as Executive Chairman, extending his tenure until 2032, subject to shareholder approval. The decision was taken at a board meeting on September 17, after Chandrasekaran agreed to reconsider his earlier decision not to seek another term.
The board also approved steps towards listing Tata Sons on the stock exchanges, following regulatory requirements applicable to the holding company. The company said it would seek guidance from the Reserve Bank of India, Tata Trusts and other stakeholders on the applicable compliance requirements.
Chandrasekaran had informed the board on August 12 that he would not offer himself for reappointment when his current tenure ends in February 2027. The latest decision reverses that position after the board requested him to reconsider.
The reappointment was approved by a majority of the board. Tata Trusts Chairman Noel Tata voted against the resolution and has challenged the validity of the decision. Tata Trusts holds a 66 per cent stake in Tata Sons. Venu Srinivasan, another Tata Trusts nominee on the Tata Sons board, supported Chandrasekaran’s reappointment, according to reports.
The board’s decision on listing also faces opposition from Noel Tata, adding to the differences between Tata Sons and Tata Trusts over the company’s governance and future structure. Both the proposed reappointment and listing plans will require consideration at the shareholders’ meeting, where Tata Trusts holds a majority stake.
The developments come amid regulatory pressure on Tata Sons regarding its status as an upper-layer non-banking financial company and the associated listing requirements. The company has said it will work towards compliance while consulting relevant stakeholders.
