- N. Chandrasekaran was reappointed Tata Sons Chairman for a fresh five-year term.
- Noel Tata dissented, terming the board's reappointment decision illegal.
- Tata Trusts, led by Noel, may challenge Chandrasekaran's reappointment.
The Tata Sons board approved a fresh five-year term for N. Chandrasekaran as Chairman of Tata Group’s holding company, reportedly with a majority vote. According to a Moneycontrol report, the Tata Sons board voted 4-1 to retain N. Chandrasekaran. However, Noel Tata stated that he considers the vote "illegal, challenging the validity of the decision.
"I voted against Chandra's appointment as chairman. My veto was wrongly overridden based on a legal opinion. This decision is illegal. I have registered my dissent," Noel Tata told Moneycontrol.
Noel Tata, chairman of the Tata Trusts, was the only member to vote against the proposal to reappoint Chandrasekaran.
Tata Trusts Seek Chandrasekaran Removal At AGM
As per media reports, the Noel-led Tata Trusts will seek to remove Chandra at the annual general meeting (AGM). "Once he is removed as a director, he will no longer be able to continue as chairman," said a person familiar with the matter.
Also read: Tata Sons Takes U-Turn To Reappoint Chandrasekaran As Board Chairman; Tata Trust Disagrees
No Consensus On Tata Sons Listing
CNBC-TV18 reported that the board also discussed Tata Sons' listing plan, but they did not resolve. However, several stakeholders, including Tata Trusts, which hold a majority stake in the holding company, may challenge Chandrasekaran's reappointment as chairman, as per media reports.
Also Read: Rs 50,000 Crore In OMO Sale: How RBI Tackles Massive Liquidity Surplus In Banking System
RBI Told Tata Sons To Go Public
Tata Sons board approved a fresh five-year term for N. Chandrasekaran as executive chairman of the Tata Group holding company. Chandrasekaran had said earlier that he won’t seek reappointment after his tenure ends in February next year; however, the board reversed his decision, Reuters reported, citing sources.
The decision was reversed just days after the Reserve Bank of India rejected a request for an exemption from listing rules for Tata Sons. The reason for the change was not immediately clear, the sources said, declining to be named as they were not authorised to speak to the media.
Chandrasekaran, whose current term ends in February 2027, had said last month that he would not seek re-election. Chandrasekaran’s decision to seek re-election has been followed by months of tension over the group’s strategy and governance with the Tata Trusts, a charitable trust that controls 66% of Tata Sons, Reuters said.