Mumbai: Tata Sons has approved the re-appointment of N Chandrasekaran as Chairman for another five-year term, reversing his earlier decision not to seek a third term, according to sources.
The decision was taken at a Tata Sons board meeting in Mumbai on Thursday. Chandrasekaran has served as chairman since 2017 and is currently completing his second five-year term, which is scheduled to end in February 2027.
Chandrasekaran Reverses Decision To Step Down
Chandrasekaran had announced on August 12 that he would not seek re-appointment after his current tenure ended in February 2027.
The latest decision comes after the Reserve Bank of India rejected Tata Sons’ request to surrender its NBFC registration, bringing the long-running question of a possible Tata Sons listing back into focus.
According to reports, the Nomination and Remuneration Committee will ask Chandrasekaran to reconsider the decision he conveyed to the board in August.
Tata Sons Listing Remains Key Issue
The leadership decision comes amid differences within Tata Sons over the group’s future direction, including the proposed listing of Tata Sons and capital allocation for newer ventures.
Noel Tata, chairman of Tata Trusts and a Tata Sons board member, was reported to have opposed Chandrasekaran’s re-appointment. Sources said he was the only director to vote against the resolution.
Tata Trusts holds a 66 per cent stake in Tata Sons, while the Shapoorji Pallonji Group holds around 18 per cent. The latter has favoured a listing of Tata Sons, while opposition to the listing has been associated with Noel Tata’s position.
Chandrasekaran Has Led Tata Sons Since 2017
Chandrasekaran became Tata Sons chairman in 2017, succeeding Ratan Tata. He was re-appointed for a second five-year term in 2022. Tata’s official records show that his current appointment runs from February 21, 2022, to February 20, 2027.
Before his latest re-appointment, Tata Sons had been considering the succession process following Chandrasekaran’s August announcement. Several senior executives were reportedly being considered as potential successors.
The RBI’s recent decision has added another layer to the group’s leadership and governance discussions, with the regulatory status of Tata Sons potentially affecting the company’s future listing plans.