Noel Tata to step down as Titan vice-chairman and director on 12 November as he turns 70
Noel Tata's exit from several Tata Group boards comes amid a dispute with Tata Sons over N Chandrasekaran's reappointment and the proposed listing of the holding company. He will, however, remain a Tata Trusts nominee director on Tata Sons' board.
Tata Trusts Chairman Noel Tata will step down as Director and Vice-Chairman of Titan Company Ltd on 12 November, as part of the Tata Group's governance guidelines, PTI reported. In a regulatory filing, Titan said Noel Tata would retire from his positions as Non-Executive, Non-Independent Director and Vice-Chairman with effect from 12 November. The development comes as Noel Tata, 69, turns 70 on 12 November.
He has already stepped down from the boards of several Tata Group companies, including Trent, Voltas, Tata Steel, Tata Investment Corporation and Tata International, in line with the group's governance framework. What is Companies Act, 2013? Noel Tata also serves as Chairman of Tata Trusts, the largest shareholder of Tata Sons.
The Companies Act, 2013, stipulates that a person cannot be appointed or continue as a Managing Director or Whole-Time Director of a company after attaining the age of 70, subject to the provisions of the Act. Tata will also step down from his roles as non-executive chairman of Trent, Voltas, Tata Investment Corporation, Tata International, Trent Hypermarket Pvt Ltd, and Tata International West Asia DMCC in Dubai. However, he will continue as a Tata Trusts nominee director on the board of Tata Sons, the group's holding company.
Noel Tata and Tata Sons locked in disputeThe leadership changes come at a time when Noel Tata and Tata Sons are locked in a dispute over the reappointment of chairman N Chandrasekaran and the proposed listing of the holding company. On 17 September, the Tata Sons board cleared a fresh five-year term for Chandrasekaran in a 4-1 vote, with Tata voting against the resolution. He again questioned the validity of the decision on 26 October, contending that the reappointment was not included on the meeting's agenda and did not comply with the company's Articles of Association.
Tata Sons, however, has defended the decision, maintaining that the reappointment was valid. The two sides have also differed over the proposed stock market listing of Tata Sons. Tata is opposed to the listing, while the board has begun steps to meet the Reserve Bank of India's regulatory requirements following the central bank's decision on the company's listing obligations.
Tata Trusts holds around 66% of Tata Sons. Although Noel Tata is relinquishing board positions at several Tata Group companies, he will continue as a Tata Trusts nominee director on the holding company's board.
Source: Mint Companies
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