Tata Sons Board Defers Chairman Chandrasekaran’s Reappointment: Economic Times

The board of Tata Sons has deferred discussions on the reappointment of chairman N Chandrasekaran for a third term, following differences that surfaced during a meeting on Tuesday, according to a report by The Economic Times.

The report said that the matter was taken up at a board meeting attended by all directors, including Noel Tata, chairman of Tata Trusts, and vice-chairman Venu Srinivasan. Noel Tata is learnt to have raised concerns over losses in some of the group’s newer businesses, prompting a detailed discussion. Other board members are reported to have backed Chandrasekaran’s reappointment, attributing the losses to greenfield investments and the time required for such ventures to mature.

Chandrasekaran, who has led Tata Sons since 2017, still has a year remaining in his current term, which runs until February 2027. His reappointment would require a special resolution and an exemption from the group’s retirement policy for non-executive roles beyond the age of 65. He turns 63 in June.

According to the report, Noel Tata outlined four conditions before supporting a fresh term. These include keeping Tata Sons unlisted in line with regulatory guidelines applicable to upper-layer non-banking financial companies, maintaining a debt-free balance sheet, ensuring capital expenditure does not excessively strain reserves, and containing losses from acquisitions such as Air India and BigBasket.

Anita George, who heads the board’s reappointment committee, reportedly supported Chandrasekaran, noting that losses in greenfield projects were anticipated and adequately provisioned. The discussion was ultimately deferred, with Chandrasekaran stating that alignment between Tata Sons and Tata Trusts was essential for institutional stability