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Tata Sons board approves fresh five-year term for N Chandrasekaran
Noel Tata reportedly votes against reappointment as board also considers Tata Sons listing
MUMBAI: Tata Sons has approved a fresh five-year term for N Chandrasekaran as executive chairman, reversing his earlier decision not to seek reappointment, according to media reports.
The decision was taken at a Tata Sons board meeting in Mumbai on Thursday. Chandrasekaran’s current five-year term is due to end on 20 February 2027.
According to reports, Tata Trusts chairman Noel Tata was the only board member to vote against the resolution on Chandrasekaran’s reappointment. The board also considered the issue of listing Tata Sons, but no resolution was passed on the matter, the report said.
The development comes after Chandrasekaran announced on 12 August that he would complete his current term but would not seek a third term. His decision had triggered discussions around succession and the future leadership of the Tata Group.
Noel Tata had earlier favoured beginning the process of identifying Chandrasekaran’s successor. Reports had also said that the Sir Dorabji Tata Trust had indicated the need to constitute a selection panel for the process.
The board’s decision comes days after the Reserve Bank of India rejected Tata Sons’ application to surrender its registration as a Core Investment Company. The move effectively kept the issue of Tata Sons’ compliance with the regulatory framework governing upper-layer NBFCs in focus.
The listing question has been a key point of contention, with Tata Trusts and other stakeholders differing over the holding company’s future structure. Reports have said Noel Tata favours keeping Tata Sons private and unlisted, while the RBI’s decision has increased pressure on the company to address the regulatory requirements.
Sources cited in media reports close to Tata Trusts have questioned the legality of the latest decision, while Noel Tata has reportedly recorded his dissent.
The reported reappointment now puts Chandrasekaran on course to continue as Tata Sons chairman beyond February 2027, while questions around the company’s potential listing and its relationship with Tata Trusts remain unresolved.
