Why Noel Tata is holding up Tata Sons chairman's reappointment
What's the story
The chairman of Tata Trusts, Noel Tata, has reportedly told the board of Tata Sons that there are several unresolved issues. This makes any formal discussion on the reappointment of N Chandrasekaran as chairman premature. The concerns were raised after a board meeting last week and could potentially lead to a deadlock between Chandrasekaran and Noel.
Strategic concerns
Noel seeks clarity on 5-year strategic roadmap
Noel has sought greater clarity from Chandrasekaran on the group's five-year strategic roadmap. He also wants a framework for providing an exit option to the Shapoorji Pallonji Group, without going public. Further, he is looking for Chandrasekaran's formal position on the long-debated matter of listing of Tata Sons. These issues have gained traction amid turbulence at the Trusts and holding company over governance and performance of units such as Air India and BigBasket.
Meeting details
Special board meeting held to address concerns
Chandrasekaran had called a special board meeting on May 26, to respond in detail to the concerns raised by Noel at the previous board meeting. Chief executives of Air India, Tata Electronics and Tata Digital presented their respective businesses to the board during this session. Unlike the previous meeting which was marked by sharper scrutiny and unresolved questions, this one focused extensively on operating businesses.
Upcoming meeting
Next board meeting scheduled for June 12
The next board meeting of Tata Sons is scheduled for June 12, where annual accounts will be discussed. Noel also indicated that any timeline or date for considering the reappointment would have to be discussed and arrived at through consensus. This comes as discussions with SP Group on an exit plan do not carry significant weight until clarity emerges from the Reserve Bank of India (RBI) on the matter of listing.