Tata Trusts Backs N Chandrasekaran For Third Term As Tata Sons Chairman
The development comes at a time when the trustees of Tata Trusts are vertically split over board appointment and governance issues.
Tata Trusts has recommended a third term for N Chandrasekaran as the Chairman of Tata Sons, the principal investment holding company and promoter of Tata group companies, according to sources.
The development comes at a time when the trustees of Tata Trusts -- the umbrella of philanthropic trusts that control 66 per cent of the equity share capital of Tata Sons -- are vertically split over board appointment and governance issues.
It wasn't immediately known when the recommendation was made and what action Tata Sons took on it.
Last week, the Tata Trusts board had met, discussing routine issues, staying away from contentious matters, amid the infighting that threaten to impact the functioning of Tata Sons and in general the over USD 180 billion salt-to-semiconductor conglomerate.
"Tata Trusts have recommended a third term. It is for the Tata Sons board to decide," a person aware of the development said.
Comments from Tata Sons could not be obtained as e-mailed query remained unanswered.
If Tata Sons board approves Chandrasekaran's third term, it remains to be seen if he would continue to be in an executive role, as he will cross 65 years of age and according to reports as per Tata Group's rule, after reaching 65 executives need to relinquish their positions although it allows them to continue in non-executive roles up to 70 years of age.
In February 2022, the board of Tata Sons had approved a second five-year term for Chandrasekaran till February 2027, subject to shareholders' approval. Later, it was approved by the shareholders in July that year, although the company's single-largest minority shareholder, the Shapoorji Pallonji family with 18.4 per cent stake, abstained from voting on the matter.
Chandrasekaran, who had joined the Tata Sons board in October 2016, was designated chairman in January 2017 and took official charge in February 2017 in the aftermath of the sacking of Cyrus Mistry as Chairman of Tata Sons.
While he spent a large part of his first term fighting the legal battle with Mistry, Chandrasekaran led the reinvention of the group's aviation business after successfully acquiring Air India Ltd and in bringing super app Tata Neu to tap opportunities in the fast growing e-commerce space.
He has also focussed on driving manufacturing of semiconductors and electronics in India and preparing group companies to be future ready in the wake of AI disruptions.
(This report has been published as part of the auto-generated syndicate wire feed. Apart from the headline, no editing has been done in the copy by ABP Live.)
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