More Stories

Informist, Thursday, Sept. 17, 2026

 

--Tata Trusts say resolution to reappoint Chandrasekaran as chairman illegal 

--Tata Trusts say Chandrasekaran's decision to step down in Feb was final 

 

MUMBAI – Objecting sharply to the board resolution of Tata Sons Pvt. Ltd. to appoint N. Chandrasekaran as executive chairman of the holding company for a third consecutive term, Tata Trusts Chairman Noel Tata Thursday said it was time to move on and transition to a new chief.

 

"The intimation made by the Chairman (Chandrasekaran) vide his communication dated 12 August 2026 (when he opted against seeking a third term) has been duly accepted and has attained finality," Tata said in a statement during the board meeting Thursday. "The Chairman has conveyed his decision; the shareholders have conveyed their acceptance; it is now time to move on."

 

Chandrasekaran had in August opted not to seek reappointment when his current five-year term, which began in February 2022, ends. The board of Tata Sons had deferred a decision on Chandrasekaran's reappointment in February, May, and June because of lack of unanimity.

 

Thursday, the board, by a majority vote, agreed to offer Chandrasekaran a third term when his current term ends in February. "A resolution now for re-appointment moved at this meeting would therefore ask this Board to set aside three things at once: the Chairman's own stated decision, the acceptance of that decision by the majority shareholder, and the further process which that shareholder has asked this Company to set in motion," Noel Tata said.

 

The Tata Trusts collectively hold 66% stake in Tata Sons, which in turn is the holding company of a host of companies ranging from Tata Consultancy Services Ltd. to Tata Motors Passenger Vehicles Ltd. to Air India and newer ventures like Tata 1mg.

 

In a separate statement, the Tata Trusts said the resolution of Tata Sons to reappoint Chandrasekaran as executive chairman was illegal. "The decision of Mr. N. Chandrasekaran, Chairman of Tata Sons, not to offer himself for reappointment upon the conclusion of his current tenure on 20 February 2027, has been duly accepted and has attained finality," they said.

 

The philanthropic organisations said Chandrasekaran's decision in August was "freely taken and clearly expressed" and was not the outcome of any process or review. "It was made public without prior intimation or any deliberations with the shareholders of the company," the trusts said. "Once such a decision has been publicly communicated, it has consequences which cannot be afterwards undone, since the Group's employees, its lenders and counterparties, the market and the majority shareholder have all proceeded on it."

 

It went on to call Thursday's resolution a "legal nullity" as per the provisions of the articles of association of Tata Sons. Noel Tata also linked his argument about the appointment with the contentious listing dictate by the Reserve Bank of India. "A decision upon the chairmanship taken now, and afterwards found to have been taken in respect of a person whose office as director was not free from doubt, would be open to serious legal challenge by any shareholder who chose to bring it," he pointed out.

"This Company should not expose itself to a challenge of that kind at any time," Tata said. "It should certainly not do so at a moment when it has matters of far greater consequence pending before its regulator."  End

 

Reported by Anand JC

Edited by Rajeev Pai

 

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

 

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd. by NSE Data & Analytics Ltd., a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt. Ltd.

 

Informist Media Tel +91 (22) 6985-4000

Send comments to feedback@informistmedia.com

 

© Informist Media Pvt. Ltd. 2026. All rights reserved.