Tata Sons board backs Chandrasekaran's five-year extension, clears path for listing
N Chandrasekaran to be reappointed as chairman despite Noel Tata's veto
The outcome of the Tata Sons board meet saw chairman N Chandrasekaran get a five-year extension and also gave a go-ahead for the group's long-pending listing plan. According to multiple reports citing sources, the board is said to have outvoted objections from Tata Trusts chairman Noel Tata.
Sources said Noel Tata, who holds veto rights on the board on behalf of Tata Trusts, disagreed with both resolutions and attempted to invoke his veto power to block them.
The board went ahead regardless, reportedly relying on a legal opinion Tata Sons had secured that clarified the limits of that veto power. The meeting stretched on for roughly three hours amid the ongoing organisational turmoil.
Get updated faster and for FREE: Download the Gulf News app now - simply click here.
Chandrasekaran said last month that he intends to step down once his term concludes in February 2027, a decision that came after months of tension with Tata Trusts Chairman Noel Tata over the listing question and how capital is allocated across the vast conglomerate.
The listing question sits at the centre of the standoff. The RBI classified Tata Sons as an upper-layer non-banking financial company in 2022, requiring a listing within three years. Tata Sons tried to surrender that registration to stay private, but the RBI rejected the move on September 11 and ordered an immediate listing.
Both board decisions still need ratification at Tata Sons' AGM, which remains unresolved. The AGM was adjourned in August for lack of quorum, a first in Tata Sons' history, and the Registrar of Companies has extended the deadline to convene it to December 31, 2026.
Shares of Tata Group stocks surged. Tata Chemicals Ltd. shares jump as much as 13%, while Tata Motors Passenger Vehicles Ltd. gained 4.7% on Indian bourses.
With inputs from Agencies. More updates to follow.
