Tata Sons chairman reappointment in limbo as trust raises concerns
What's the story
The fate of N Chandrasekaran's reappointment as Tata Sons Chairman hangs in the balance, with the next board meeting scheduled for June. The decision was delayed after Tata Trusts Chairman Noel Tata raised concerns beyond tenure. These included capital allocation, financial and market performance across group companies, and the ultimate authority within the Tata Group.
Approval process
Need for consensus on board
Tata Group officials have said that Chandrasekaran's reappointment can't go through without the approval of both Tata Trusts-nominated directors on the Tata Sons board. These are Noel Tata himself and Venu Srinivasan. This is in line with Article 121A of Tata Sons' Articles of Association, which requires prior trust approval for key decisions such as appointing or reappointing the Chairman and Managing Director.
Business strategy
Fresh business plan demanded
In July 2025, the boards of two major Tata Trusts unanimously recommended a fresh five-year term for Chandrasekaran. This was after he presented detailed business plans to the Trusts in mid-2025. However, now there's a demand for a fresh business plan as the one presented in 2025 is considered outdated. The call comes amid losses in several new-age and consumer-facing businesses of the Tata Group.
Term comparison
Second term struggles
The difference between Chandrasekaran's first and second terms as chairman is stark. His first term, which started on February 21, 2017, was highly successful. However, the ongoing second term has not met the expectations of the group's leadership. Over the past year, Tata Group's listed companies have seen a significant decline in market value with TCS and Tata Motors among those witnessing major drawdowns.