Tata Sons Delays Decision on N. Chandrasekaran’s Chairman Reappointment

Tata Sons Executive Chairman N. Chandrasekaran sought to reschedule discussions on his third-term reappointment after disagreements faced in a board meeting on Tuesday’s. According to the sources, the matter said that the decision followed differences among board members over the management renewal procedure.

During the board meeting on new business losses, Noel Tata, chairman of Tata Trusts, showed concerns over losses incurred by different new projects of the Tata Group. It is endorsing a widespread discussion among board members. The other board members assisted Chandrasekaran's reappointment, resulting in the losses due to these being greenfield investments and the gestation period required for them to get mature.

Noel Tata is a Tata Trusts candidate on the board of Tata Sons, along with Venu Srinivasan. Chandrasekaran’s present term does not end immediately. He will play the same role until February 2027. The meeting was attended by all board members. Tata Trusts Chairman Noel Tata and Vice Chairman Srinivasan were part of the meeting.

The reappointment demands a special resolution. This change entails an exception to Tata Sons’ retirement policy for non-executive roles after the age of 65. Chandrasekaran will turn 63 in June.

After beginning the role of executive chairman in 2017, Chandrasekaran has led a phase focused on consolidation. It can boost the balance sheet, and enforce greater discipline in capital share across the group.

Noel Tata, chairman of Tata Trusts, has reportedly proposed four conditions. These conditions should be fulfilled before granting a reappointment to the Tata Sons chairman. Another important condition is that Tata Sons must stay unlisted, in line with Reserve Bank of India guidelines for upper-layer non-banking financial organizations, a category that adds on the large conglomerates named Tata Sons.