Chandrasekaran gets second term as Tata Sons chairman, Noel Tata votes against
Tata Sons board approves a five-year extension for N Chandrasekaran even as Tata Trusts chairman Noel Tata voted against the move.
The Tata Sons board has approved extending N Chandrasekaran's tenure as chairman for another five years. Sources close to the matter said Tata Trusts chairman Noel Tata was outvoted by the rest of the board, meaning he had voted against the extension.
The decision was taken at a Tata Sons board meeting held in Mumbai on Thursday, September 17. The meeting was closely watched. The recommendation for the extension had originally come from the Sir Dorabji Tata Trust and the Sir Ratan Tata Trust, and was later considered by Tata Sons' nomination and remuneration committee and the board.
The board approved extending Chandrasekaran's term by five years. But during this key decision, Noel Tata voted against the extension, triggering widespread discussion about the internal developments within the Tata Group.
Noel Tata, chairman of the Tata Trusts, was the only member who voted against Chandrasekaran's reappointment. The board also considered the matter of the company's listing, but no resolution was passed. However, several Tata Trusts holding a large stake in the holding company could still challenge Chandrasekaran's reappointment as chairman.
The decision gives Chandrasekaran the opportunity to continue as executive chairman while Tata Sons works through regulatory matters and proceeds with its listing process. Chandrasekaran had announced on August 12 that he would not seek a third term when his current term ends on February 20, 2027.
In September 2022, the Reserve Bank of India classified Tata Sons as an upper-layer non-banking financial company, which meant the company was required to get listed within three years. Following this, Tata Sons repaid its debt and sought to have its core investment company registration cancelled in order to remain a private company, but the RBI rejected this application on September 11, 2026, and directed the company to begin the listing process immediately.
The listing issue has become a major source of tension within the Tata Group. Tata Trusts, which hold about 66 percent stake in Tata Sons, are opposed to an IPO, while the Shapoorji Pallonji Group, which holds about 18.4 percent stake, is pushing for a listing to improve valuation and liquidity.
