Source : INDIA TODAY NEWS
Tata Sons Chairman N Chandrasekaran has resigned from his position but will continue in the role until his current term ends in February, according to a source familiar with the matter, reported Reuters.
The development comes at a time when the Tata Group is dealing with several challenges across its businesses and follows differences between Tata Sons and Tata Trusts over his reappointment.
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It must be mentioned that Tata Sons is the principal holding company of the $400-billion Tata Group. It controls more than 30 companies, including Tata Consultancy Services (TCS), Tata Motors and Air India.
Tata Sons is 66% owned by Tata Trusts, the group’s charitable arm.
CHANDRASEKARAN TO COMPLETE CURRENT TERM
Chandrasekaran’s current term as chairman of Tata Sons is due to end in February. The source, who spoke on condition of anonymity because of the sensitivity of the matter, said he has resigned but will complete his term.
In February, Tata Sons postponed a decision on extending his tenure after Noel Tata, chairman of Tata Trusts, opposed the move, according to an earlier Reuters report.
Noel Tata was seeking several conditions, including a commitment that Tata Sons would never be listed. Chandrasekaran was not willing to give such a commitment, according to a source. The two sides also differed over board representation.
SHARES FALL AFTER LEADERSHIP SHAKE-UP
Tata Group stocks fell as much as 4% on Wednesday after Reuters reported that Tata Sons Chairman N Chandrasekaran had resigned, triggering a selloff across the conglomerate’s listed companies.
Tata Consultancy Services (TCS), India’s largest IT services exporter, led the decline, falling 4.1%. Tata Motors, which owns Jaguar Land Rover, dropped 2.8%.
Meanwhile, in a statement on Wednesday, Chandrasekaran said he had informed the Tata Sons board of his decision and asked it to begin the succession process soon to ensure a smooth transition.
“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 said.
He said the Sir Dorabji Tata Trust and Sir Ratan Tata Trust had unanimously recommended extending his tenure for another five years. The proposal was also recorded and recommended by the Tata Sons Nomination and Remuneration Committee and the board.
However, the resolution was tabled before the Tata Sons board on February 24, 2026, but was not passed after one board member did not support it.
Chandrasekaran said he chose to defer the decision after the proposal failed to receive unanimous support.
He said six months had passed since that board meeting, but no resolution had been reached on his reappointment. “It has been 6 months since that Board meeting, and no resolution has been reached till date.”
– Ends
SOURCE :- TIMES OF INDIA
