New Delhi: The question of N Chandrasekaran’s future at the helm of Tata Sons remains firmly unresolved, with his reappointment for a third term now appearing
further away than ever. Following last week’s board meeting, Tata Trusts chairman Noel Tata conveyed to the Tata Sons board that several critical matters were still outstanding, making any formal conversation about a third term premature, The Economic Times reported citing people familiar with the situation.
The development raises the prospect of a prolonged standoff between Chandrasekaran and Noel Tata, with Tata Trusts holding 66% of Tata Sons giving it decisive influence over the outcome.
What issues does Noel Tata want resolved first?
According to The Economic Times report, Noel Tata has sought greater clarity from Chandrasekaran on key issues including the group’s five-year strategic plan, a framework for providing an exit to the Shapoorji Pallonji Group without taking Tata Sons public, and Chandrasekaran’s formal stance on the long-debated listing question. The Shapoorji Pallonji Group, which holds 18% of Tata Sons, is looking to sell its stake to repay debt, adding urgency to the structural questions around the holding company’s future.
What happened at the May 26 board meeting?
The May 26 meeting had been convened by Chandrasekaran specifically to address concerns Noel Tata had raised at the February 24 board meeting, where his reappointment had first been deferred. CEOs of Air India, Tata Electronics and Tata Digital presented business updates, with Noel Tata providing extensive feedback on BigBasket and Air India in particular. When some directors informally raised the possibility of discussing Chandrasekaran’s reappointment at the next meeting, Noel Tata indicated it was too soon and that any timeline would need to be agreed upon by consensus. The next Tata Sons board meeting is scheduled for June 12 to discuss annual accounts. Neither Tata Sons nor Noel Tata commented on the developments.
