CORPORATE

Rift in Tata Sons as Chandrasekaran gets extension as chairman amid protest by Noel Tata

Tata Sons has reappointed N Chandrasekaran ​as chairman for five years and decided to consider a public listing.
The resolutions passed by the Tata Sons board on Thursday deepen the fissures within the 158-year-old Tata Group over these contentious issued.
Mr Chandrasekaran and the Noel Tata-led Tata Trusts, which owns 66 per cent of the holding company, have clashed over issues including a potential listing of Tata Sons, Air India’s mounting losses and a planned exit by a minority shareholder.
The 63-year-old chairman’s reappointment is likely to reassure investors as the group grapples with deepening losses at Air India ​and a sharp downturn at Jaguar Land Rover.
However, the Tata Trusts, the largest shareholder and the charity arm of the Tata Group, has publicly opposed Mr Chandrasekaran’s reappointment and ​the potential Tata Sons listing, setting the stage for a confrontation.
Boardroom disputes are not new to Tata Sons. In 2016, ⁠the board had ousted its then-chairman after he fell out over governance issues with group patriarch Ratan Tata, Noel Tata’s half-brother who had headed the charity arm until his​ death in 2024.
Mr Chandrasekaran had said last month that he would not seek another term as chairman after February 2027.
But the Tata Group has said in a statement that the board has asked him to reconsider his decision in the group’s “larger interests”, a request that he accepted on Thursday.
Noel Tata, 68, opposed Mr Chandrasekaran’s reappointment and the likely listing of Tata Sons in a statement at Thursday’s board meeting.
The reappointment is “illegal” under Tata Sons’ articles of association, Tata Trusts has said in a statement.

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