Tata Sons will oppose chairman N Chandrasekaran's decision not to seek reappointment when his current term ends in February 2027. The nomination and remuneration
committee (NRC) of the board will oppose the move and ask him to reconsider the move, a report by The Economic Times said. Top officials close to the matter said the emerging view is that with a listing on the horizon, it's become more imperative for Chandra to stay on as chairman to ensure stability and continuity across the group during a time of transition to the public era, the report added. That could set the stage for a clash between the key committee with Tata Sons' majority shareholder Tata Trusts, which had issued a statement accepting Chandrasekaran's decision. The matter will come up at the board meeting due September 17. The NRC of a board is responsible for the selection and remuneration of directors and key personnel comprising of Harish Manwani, Anita Marangoly George and Venu Srinivasan. If Chandra were to reconsider his decision, it would need the support of Tata Trusts as he would need to be reappointed as director at an annual general body meeting. Last month, Chandrasekaran had decided not to seek re-appointment tendering his resignation. Chandrasekaran had an illustrious 40 years of career with the Tata Sons where he rose through the ranks to become the CEO of Tata Consultancy Services in 2009 and the chairman of the group in 2017. "I have completed 40 years of professional life at the Tata Group. I am grateful for the immensely satisfying opportunity to contribute to this venerable institution. Leading Tata Sons over the past decade has been a great honour and a profound responsibility," he had said in his letter.
RBI's order to list public:
In a latest order, the Reserve Bank of India (RBI) has asked Tata Sons to move towards a public listing. A public listing would mean Tata Sons would have to meet the disclosure, governance and regulatory requirements applicable to listed entities, giving investors greater visibility into its financial performance, investments and business structure.
Tata Sons had sought deregistration as part of its efforts to avoid the requirement of publicly listing its shares. With the RBI turning down the request, Tata Sons will now have to comply with the rules applicable to NBFCs classified in the upper layer, including the listing requirement.
