Ratan Tata is no more in this world but long before his departure, he had made a person the chairman of Tata Sons. This person is none other than N Chandrasekaran, the current chairman of Tata Sons. In 2017, when the board removed the then chairman Cyrus Mistry, a leadership crisis arose. During this period, Chandrasekaran was made the chairman of Tata Sons. According to the report of ET, now the news is coming that Tata Sons, the holding company of Tata Group, has appointed Chairman N. The decision on Chandrasekaran’s tenure extension has been postponed for now. Meaning, no decision has been taken at present on Chandrasekaran’s extension.
N Chandrasekaran originally came from Tata Consultancy Services (TCS), the IT company of Tata Group. He strengthened TCS globally and made it the most profitable company of the group. The question here is what is the issue now that the decision regarding Chandrasekaran’s extension is being postponed. Let us understand the whole thing.
What is the reason for the dispute?
According to media reports, differences emerged on this issue in the board. Especially Noel Tata, who is the chairman of Tata Trust, did not agree to the reappointment of Chandrasekaran. However, other directors supported him. According to an IT report, concerns were raised about the increasing losses in some of the new companies of the group. In the company’s board meeting, differences among senior officials on this issue emerged openly. Tata Trust Chairman Noel Tata raised the issue of increasing losses in new ventures. At the same time, other directors argued that such financial pressure is normal in the initial phase of greenfield projects.
When is Chandrasekaran’s tenure ending?
Tata Sons’ current chairman N Chandrasekaran was given extension for a third term last year. According to this extension, Chandrasekaran’s current tenure will end in February 2027, when he will turn 65. Chandrasekaran has been heading the Tata Group since 2017. He took over this responsibility when the board removed former chairman Cyrus Mistry from the post. After this news, Tata Investment Corporation’s shares were seen trading at ₹ 668, falling by about 2.94% on NSE at 3:40 pm.