Tata Trusts has initiated the process to select a new Chairman in place of incumbent N Chandrasekaran, who has opted against a third term beginning February 2027. The Sir Dorabji Tata Trust (SDTT) passed a resolution on Thursday \u201cto initiate the setting up of a selection committee as soon as possible\u201d to choose the new Chairman.<\/p>\n
The SDTT is one of the two principal shareholders of Tata Sons, the holding company of the salt-to-software conglomerate. The other key trust, Sir Ratan Tata Trust (SRTT), is facing a regulatory probe and has been barred from holding meetings by the Charity Commissioner of Maharashtra. Together, the two trusts control over 52 per cent of Tata Sons and are led by Noel Tata.<\/p>\n
In a statement, Tata Trusts said it respects Chandrasekaran\u2019s decision not to offer himself for reappointment as Chairman. The Trusts appreciated Chandrasekaran\u2019s stewardship and contribution to the Tata Group, and thanked him for his \u201cimmense contribution during a period of significant change, growth and transformation of the Group.\u201d It also extended support to Tata Sons in ensuring a smooth and timely leadership transition.<\/p>\n
Chandrasekaran, popularly known as Chandra, announced that he will not seek a third term at Tata Sons after failing to secure the backing of Noel Tata. While Chandra oversaw the group\u2019s expansion and its foray into electronics and semiconductor ventures, losses in the aviation and digital businesses put pressure on the conglomerate\u2019s finances.<\/p>\n
Among the names doing the rounds as probable successor is Tata Steel CEO and Managing Director TV Narendran, considered one of the leading contenders. Other names that have surfaced in industry circles include R Mukundan, Managing Director and CEO of Tata Chemicals; Aarthi Subramanian, Executive Director \u2013 President and Chief Operating Officer at TCS; Harish Bhat, Tata Group veteran; and P Venkatesalu, Managing Director and CEO of Trent.<\/p>\n
In an exclusive interview with businessline, former Tata Sons senior executive Mukund Rajan said: \u201cNoel Tata should not be ruled out for a larger role on grounds of experience, pointing to similar doubts surrounding Ratan Tata when JRD Tata was choosing his successor.\u201d<\/p>\n
While Tata Trusts has begun discussions to find Chandra\u2019s successor, the selection process for the new Chairman, as well as the annual general meeting of Tata Sons, is linked to the removal of restrictions on the SRTT. The Articles of Association of Tata Sons state that the selection committee for choosing the Chairman will comprise five persons, including three nominated jointly by the SRTT and SDTT. The other two positions are to be filled by a Tata Sons board member and an independent external person selected by the board.<\/p>\n
Similarly, for the annual general meeting, the Articles of Association stipulate participation by a representative nominated jointly by both trusts. Chandrasekaran\u2019s re-election as a director liable to retire by rotation is listed on the AGM agenda. The SRTT has approached the Charity Commissioner of Maharashtra to lift the stay, which would enable it to participate in the AGM and carry forward the board agenda.<\/p>\n
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