New Delhi: In a major development at the top of the Tata Group, Tata Sons’ board has voted to reappoint N Chandrasekaran as chairman for a third five-year term, according to people familiar with the deliberations.
The reported decision comes weeks after Chandrasekaran had indicated to directors that he did not intend to seek another term. The reversal follows the Reserve Bank of India’s rejection of Tata Sons’ application to surrender its NBFC registration, potentially bringing renewed attention to the possibility of a stock market listing.
According to sources, board members believe leadership continuity could provide greater certainty to potential investors if Tata Sons eventually moves towards an IPO. Tata Sons has taken several steps to avoid a mandatory listing, including repaying more than ₹21,000 crore in debt, according to the report.
The Nomination & Remuneration Committee is expected to ask Chandrasekaran, 63, to reconsider the decision he communicated in August. Sources said that decision was made before the RBI’s latest ruling and under different assumptions about Tata Sons’ regulatory status.
The development has also highlighted differences within the Tata ecosystem. Noel Tata, chairman of Tata Trusts, reportedly voted against Chandrasekaran’s reappointment, but the resolution was passed by a majority. The Sir Dorabji Tata Trust’s previously initiated process to select a new chairman is expected to be paused or discontinued if Chandrasekaran accepts the renewed term.
Tata Sons and Tata Trusts have not officially commented on the reported outcome of the board meeting.
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