Quorum Not Met, Tata Sons Holds Off Annual Meet Days After Chairman's Exit

Tata Sons adjourned its annual general meeting (AGM) that was scheduled for August 18, according to an NDTV Profit report. The adjournment comes days after the group's chairman N Chandrasekaran announced his decision to not extend his term as the chairman of the company. 

Last week, Tata Trusts set up a committee to recommend a new chairman for Tata Sons. Tata Trusts controls around 66 per cent of Tata Sons. One of the key contenders for the post is Noel Tata who chairs Tata Trusts.  

However, Noel Tata is also due to retire from the boards of six Tata companies in November after turning 70, in accordance with the retirement policy for non-executive directors.

According to NDTV Profit, the appointment of the next Tata Sons chairman will follow a "formal committee process prescribed under the Articles of Association of Tata Sons."

At a Tata Sons board meeting in May, Chandrasekaran presented plans relating to the performance of these businesses, their growth prospects and their capital requirements. The discussion covered sectors including electronics and aviation.

During the meeting, Noel Tata expressed concerns about the performance of some businesses, including Air India and BigBasket, particularly in relation to their losses. Tata Electronics, meanwhile, was viewed more favourably in the discussions that followed.

Noel Tata's impending retirement from the boards of the six companies does not mean he will leave the Tata Sons board. He can continue as a director because nominees representing Tata Trusts are exempt from the retirement-age restriction that applies to other non-executive directors.

The six companies from whose boards Noel Tata is set to retire are Trent, Tata Steel, Titan, Voltas, Tata Investment Corporation and Tata International.