Daijiworld Media Network – Mumbai
Mumbai, Feb 24: A proposal to discuss the reappointment of N Chandrasekaran as executive chairman of Tata Sons for a third term was deferred after differences surfaced during a board meeting on Tuesday, sources familiar with the matter said.
During the meeting, Noel Tata, chairman of Tata Trusts, reportedly raised concerns over losses incurred by some of the group’s new ventures, prompting detailed deliberations among board members.
Other directors are understood to have backed Chandrasekaran’s reappointment, arguing that the losses stem from greenfield investments that require a gestation period before yielding returns. Anita George, who heads the board’s reappointment committee, is said to have supported this view, noting that such losses were anticipated and factored into long-term plans.
Chandrasekaran, whose current term runs until February 2027, has been at the helm since 2017. He turns 63 in June. His reappointment would require a special resolution and an exception to Tata Sons’ retirement policy for non-executive roles beyond the age of 65.
Noel Tata, a nominee of Tata Trusts on the Tata Sons board along with vice chairman Venu Srinivasan, is learnt to have outlined four broad expectations before any extension is considered. These include ensuring that Tata Sons remains unlisted in line with Reserve Bank of India norms applicable to upper-layer non-banking financial companies; maintaining a debt-free position; preventing excessive capital expenditure in high-risk ventures; and containing losses from acquisitions such as Air India and BigBasket.
Chandrasekaran is credited with steering the conglomerate through a phase of consolidation, balance sheet repair and renewed capital allocation discipline over the past several years.
Following the discussion, while some board members suggested putting the matter to vote, Chandrasekaran reportedly proposed deferring the decision, stating that the Tata Group functions best when Tata Sons and Tata Trusts remain aligned in their approach and decision-making.
The development comes at a time when the group is balancing legacy businesses with new-age investments, making leadership continuity a closely watched issue within corporate circles.