Tata Sons plans to hold an EGM to approve a third term for N Chandrasekaran as Executive Chairman.
The move would be an exception to the group's retirement policy and signals leadership continuity.
This comes days after the governance tensions at Tata Education and Development Trust.
Tata Sons Prepares EGM to Secure N Chandrasekaran's Third Term
This decision would be an exception to the company’s retirement policy, which generally applies to non-executive roles after the age of 65. A similar exception was made in 2016 when late Ratan Tata returned as Chairman after the exit of Cyrus Mistry
Tata Sons Chairman N Chandrasekaran LinkedIn
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Tata Sons is preparing to call an extraordinary general meeting (EGM) as its board is expected to approve the reappointment of N Chandrasekaran as Executive Chairman for the third term next week, according to a report by Economic Times. The move would come a year before his current term ends.
The report said that this decision would be an exception to the company’s retirement policy, which generally applies to non-executive roles after the age of 65. A similar exception was made in 2016 when late Ratan Tata returned as Chairman after the exit of Cyrus Mistry. Chandrasekaran, who turns 63 in June this year, has led the Tata Group since 2017 and was given a second five-year term in 2022.
Notably, this development comes after an earlier report by ET claimed that fresh tensions have surfaced within the Tata Education and Development Trust (TEDT) over the impending renewals of two trustees
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The tenures of the trustees, which includes industrialist Venu Srinivasan and former bureaucrat Vijay Singh, are due to end in about two months. However, their extensions may not be automatic. Under TEDT’s governance structure, any renewal requires unanimous approval of the board, a condition that could prove challenging.
The report added that TEDT's life trustee, Mehli Mistry, is unlikely to back the proposed renewals. If the board fails to unanimously approve the extensions, it would signal that internal differences among trustees remain unresolved.
Separately, the leadership of Tata Consultancy Services (TCS) is scheduled to brief the Tata Sons board next week about its strategy shift towards AI. According to the report, the discussion aims to address investor concerns following a recent sell-off in technology stocks, including TCS, amid rapid AI-driven changes in the industry.
Board members are also expected to get updates on key developments at Tata Electronics and Air India.
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If reappointed, Chandrasekaran would continue overseeing the group’s large-scale investments, estimated at $120 billion, spanning semiconductors, electric vehicle batteries and the revival of Air India, the report added.