Tata Sons board has approved another five year term for chairman N Chandrasekaran amid dissent from Tata trusts chairman Noel Tata.
At a board meet on Thursday, members voted to grant Chandrasekaran a third term. The proposal is said to have been opposed by Noel Tata but was passed by a majority vote, it is learnt.
The development comes amid Reserve Bank of India’s rejection of Tata Sons application for de-classification as an unregistered core investment company and its continued inclusion as non banking finance company — upper layer. RBI’s position has triggered a listing requirement for Tata Sons — a move that has split board members as Noel Tata is opposed to a share sale.
At the meeting of the Board on September 17, 2026, Chandra acceded to the Board’s request to re-consider his decision. The Board thereafter resolved by a majority vote to re-appoint him as Executive Chairman for a further term of five years upon the expiry of his current tenure.
The Board also resolved to initiate steps to comply with the applicable RBI Guidelines and will seek guidance from RBI, Tata Trusts and other stakeholders on applicable compliance requirements.
What Tata Trusts says
The Tata Trusts maintain that the Resolution to re-appoint Mr N. Chandrasekaran’s as Chairman, Tata Sons, is illegal Position reiterated at the Tata Sons Board Meeting, by Noel N. Tata, Chairman, Tata Trusts, following a move to revisit N. Chandrasekaran’s reappointment; Selection Committee to proceed in accordance with the Articles of Association