Tata Sons Board Likely To Meet On Sept 17, Chandrasekaran's Exit May Come Up

The Tata Sons board is expected to meet on September 17, according to a Moneycontrol report. While N Chandrasekaran's decision not to seek a third term as chairman does not appear on the agenda circulated so far, the issue is likely to be raised during the meeting, the report said.

Chandrasekaran announced on August 12 that he would not continue beyond his current term, which ends on February 20, 2027. The upcoming board meeting, held quarterly, is also expected to take up a fresh date for the Tata Sons annual general meeting, which was postponed on August 18 due to a lack of quorum, along with other routine matters.

The report, however, added that it remains unclear whether any director will formally ask Chandrasekaran to reconsider his decision, or push for the matter to be put to a vote. If that happens, the meeting could turn into a test of influence among key figures on the board, where Tata Trusts chairman Noel Tata and trustee Venu Srinivasan have previously held differing views on Chandrasekaran's continuation, according to the report.

The two principal Tata Trusts had unanimously supported a fresh five-year term for Chandrasekaran in July 2025 and had also asked him to ensure Tata Sons remains unlisted. However, at a board meeting in February 2026, Noel Tata reportedly said a decision on the third term could wait, citing concerns over losses and capital allocation at some group companies, and asked Chandrasekaran to clarify his stance on listing. Srinivasan, on the other hand, is understood to have supported another term for him.

What The Rules Say

Under Tata Sons' articles of association, any reappointment of a chairman and managing director requires backing from a majority of Trust-nominated directors. The Tata Sons board currently includes Chandrasekaran, Noel Tata, Venu Srinivasan, Saurabh Agrawal, Harish Manwani and Anita M George.

The July 2025 consensus among the Trusts did not translate into unanimity within the Tata Sons board, and the matter was eventually deferred instead of being voted upon. Chandrasekaran referred to this while announcing his decision on August 12, saying the Trusts had unanimously recommended his continuation but that "one director" on the Tata Sons board had not supported it.

It is not clear how the remaining three directors, Agrawal, Manwani and George, would position themselves if the issue resurfaces, the report said. Agrawal is an executive director considered close to Chandrasekaran's team. Manwani, a former chief operating officer at Unilever, chairs Tata Sons' Nomination and Remuneration Committee. George previously worked at CDPQ, a major Canadian pension fund manager. Both Manwani and George serve as independent directors.

Tata Trusts collectively own around 66% of Tata Sons and hold special governance rights, including the ability to nominate a third of the company's directors. Certain key decisions require the affirmative vote of a majority of these Trust-nominated directors, which creates some uncertainty over how a fresh proposal on Chandrasekaran's continuation would be handled if formally raised.

Succession Process Already Underway

Any discussion on September 17 would come after Tata Sons had already begun the process of identifying Chandrasekaran's successor. On August 13, the Sir Dorabji Tata Trust said its trustees had resolved to set up a selection committee, as provided under the company's articles of association, to recommend a new chairman. The Trust noted that the question of a third term for Chandrasekaran was no longer relevant.

The Sir Ratan Tata Trust, meanwhile, remains barred from holding trustee meetings amid ongoing proceedings before the Maharashtra Charity Commissioner. This has complicated the succession process, since the two principal Trusts are required to jointly nominate members to the selection committee. The same restriction had earlier disrupted the Tata Sons AGM, which was adjourned on August 18 after the two Trusts failed to jointly nominate a representative as required.