Chandrasekaran not to continue as Tata Sons Chairman

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Mumbai, Aug 12: Ahead of the Annual General Meeting (AGM) of Tata Sons, its Chairman N Chandrasekaran today announced that he will not continue in the position beyond his current term which is slated to end in February 2027.

The announcement came amidst tensions within the Tata group, especially between Chandrasekaran and Tata Trusts chairman Noel Tata.

According to the reports, Chandrasekaran decided to step down rather than allowing his continuation as chairman to be determined by what could be a contentious shareholder meeting on August 18.

 

Chandrasekaran joined the Tata group in 1987 and became chief executive officer of TCS in 2009 before taking over as Tata Sons chairman in 2017.

His tenure has coincided with a period of significant expansion as well as challenges for the group, including regulatory scrutiny of Air India following a fatal crash, pricing pressure at TCS and a cyberattack at Jaguar Land Rover that disrupted production.

Shareholders of Tata Sons were scheduled to decide on Chandrasekaran’s reappointment as a director at the August 18 AGM, according to the company’s notice.
The Board of Tata Sons had in February deferred a decision on Chandrasekaran’s reappointment as chairman after Noel Tata raised reservations over the performance of some of the group’s newer businesses. 

 

The differences between Tata Sons and Tata Trusts extend beyond Chandrasekaran’s reappointment, with disagreements over board representation, group strategy and the proposed exit of minority shareholder Shapoorji Pallonji.
The dispute has also resulted in the ouster of a Tata Sons director.

 

The tensions intensified after Tata Trusts chairman Noel Tata opposed the move to reappoint Chandrasekaran as Tata Sons chairman.

 

At the centre of the wider dispute is the relationship between Tata Sons, the principal holding company of the group, and Tata Trusts, which owns about 66 per cent of Tata Sons.
The two sides have differed over the composition of the Tata Sons board and the group’s strategic direction, while also disagreeing over how to handle the planned exit of the Shapoorji Pallonji Group as a minority shareholder.

Tata Sons houses businesses including Tata Consultancy Services, Tata Motors and Air India. (BVI)

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