Tata Sons Board defers decision on N Chandrasekaran’s third term

The board of Tata Sons on Tuesday deferred a decision on the re-appointment of Natarajan Chandrasekaran for a third term as Chairman, according to sources, signalling potential differences within the holding company of the conglomerate. The board at its meeting here did not take any call on extending Chandrasekaran’s term beyond the current one ending in February 2027.

While no official statement was issued immediately following the meeting, sources said Noel Tata, Chairman of Tata Trusts, which owns 66 per cent in Tata Sons, raised concerns about losses in certain group companies. Sources said Noel Tata was also not in favour of the listing of Tata Sons and wanted a written commitment.

Chandrasekaran, 62, received backing of several board members who felt the losses at one group company should not eclipse the group’s overall performance or the chair’s contribution over the years. Some directors called for a vote, but Chandrasekaran urged a deferral.

Following Ratan Tata’s death in 2024, his half-brother Noel Tata was appointed Chairman of Tata Trusts, the principal shareholder of Tata Sons. Tata Trusts holds a 66 per cent stake in Tata Sons, giving it decisive influence over key strategic and governance decisions at the apex holding company of the Tata Group.

Tata Sons, in turn, oversees a portfolio of around 30 operating companies spanning various sectors, such as consumer goods, automobiles, information technology and aviation. Major group entities include Jaguar Land Rover, Tata Consultancy Services, Tata Motors and Air India. The ownership structure places Tata Trusts at the centre of governance for the diversified conglomerate, with Tata Sons functioning as the principal investment holding and promoter entity for group companies. N Chandrasekaran & Noel Tata.