The board of Tata Sons appointed Chairman N. A final decision has not yet been taken regarding retaining Chandrasekaran in the post for the third time. Due to this, questions have started being raised on the recommendation made by Tata Trust trustees last year to extend his tenure. According to the report, this issue was discussed in the Tata Sons board meeting held on Tuesday, but no final decision was taken. Experts believe that this could be an indication of differences within the holding company of the Tata Group.
Questions raised on trustees’ decision
According to the report, Tata Trusts Chairman Noel Tata has put some conditions regarding the reappointment of Chandrasekaran. These are said to include issues like losses in companies like Air India, risks related to huge investments in semiconductor and battery business, and guarantee of Tata Sons not being listed in the stock market. Quoting sources, it was said that this raises questions on the validity of the resolution passed unanimously by the trustees last year. However, another source said that the proposal still stands and will be implemented only after proper procedure.
Major stake in Tata Trusts
Tata Trust holds about 66% stake in Tata Sons. Tata Sons controls the Tata Group which operates in many sectors like automobile, steel, software, aviation and semiconductor.
discussion of internal differences
For the last one year, there have been reports of differences within Tata Trusts. According to the report, senior leaders of the group including Noel Tata and Chandrasekaran also met Home Minister Amit Shah and Finance Minister Nirmala Sitharaman during this period. The government reportedly advised that issues be resolved amicably and public controversy be avoided.
Impact on appointments in trust also
In January, the board meeting of Sir Ratan Tata Trust, in which the appointment of Noel Tata’s son Neville Tata as a trustee was to be discussed, had to be canceled due to lack of quorum. Even before this, efforts to include them were not successful. However, last November Neville Tata and former group executive Bhaskar Bhatt were made trustees of the Shri Dorabji Tata Trust. This trust holds about 28% stake in Tata Sons, while Sir Ratan Tata Trust holds 23.6% stake. Tata Trusts are the largest shareholders of Tata Sons, so the decision to be taken on Chandrasekaran’s third term is now in everyone’s eyes.