- Tata Sons board wants N Chandrasekaran to continue as chairman for another five years
- Chandrasekaran had announced plans to step down when his term ends in February 2027
- Board meeting was first since his decision to quit was made public
Just over a month after he stated that he will step down as chairman of Tata Sons, the board has backed N Chandrasekaran at the helm for another term of five years, the company said on Thursday. The decision, however, has been contested by the Tata Trusts chairman Noel Tata. Tata Trusts controls 66% stake in the group.
The company's board met on Thursday for the first time since Chandrasekaran made his decision to quit public and said that he agreed to the "Board's request to re-consider his decision".
"At the meeting of the Board on September 17, Chandra acceded to the Board's request to re-consider his decision. The Board thereafter resolved by a majority vote to re-appoint him as Executive Chairman for a further term of five years upon the expiry of his current tenure," Tata Sons said.
"In September 2025 the Board of Tata Sons agreed in principle to re-appoint Chandra as Executive Chairman for a further term of five years. Pursuant to applicable provisions of law, the Board decided to obtain the relevant formal approval in February 2026," Tata Sons said in a statement.
In February 2026, in the absence of unanimity, the resolution was deferred for decision. In subsequent Board meetings in May and June, this matter was discussed but was not resolved.
"In view of the above, on August 12, Chandra opted not to offer himself for re-appointment upon the expiry of his current term," Tata Sons said.
Chandrasekaran's current term is ending on February 20 next year.
"On September 3, the Nomination Remuneration Committee (NRC) of the Board of Tata Sons met to discuss the aforesaid letter (Chandra's resignation) and discuss the issue of re-appointment of Chandra as Executive Chairman. After due deliberation and in recognition of his contributions and the larger interests of the Tata Group, the NRC unanimously resolved to request him to reconsider his decision and to recommend him for re-appointment at the next Board meeting," Tata Sons said.
The Board, Tata Sons said, also resolved to initiate steps to comply with the applicable RBI Guidelines and will seek guidance from RBI, Tata Trusts and other stakeholders on applicable compliance requirements.
The Tata Trusts, who controls 66% of the congolerate, has however, contested the board's decision calling it illegal.
"Given that Mr Noel Tata, being one of the Trust nominee directors, voted against the proposal, it was rendered legally void and without any basis," a statement from the Tata Trusts said.
The Tata Trusts maintained that in its view Chandrasekaran's decision to not continue after February 2027 and its acceptance was final.
"The Tata Trusts today reiterated their considered position that the decision of Mr. N. Chandrasekaran, Chairman of Tata Sons, not to offer himself for reappointment upon the conclusion of his current tenure on 20 February 2027, has been duly accepted and has attained finality."
The Trusts' position remains unchanged, as a considered judgement of a majority shareholder. This position was reiterated in today's board meeting by the Chairman, Tata Trusts, it added.
