The Sir Dorabji Tata Trust, which holds nearly 28% in Tata Sons, on Thursday said it has passed a resolution to set up a selection committee to choose a successor to N Chandrasekaran, whose term as chairman concludes on February 20, 2027.
“The Trustees of the Sir Dorabji Tata Trust have passed a resolution to initiate the setting up of a Selection Committee as soon as possible in accordance with the Articles of Association of Tata Sons, for the purpose of recommending a person for appointment as the new Chairman of the Board of Directors,” SDTT said in a statement.
In the statement, the trustees also expressed appreciation for Chandra’s contribution and stewardship of Tata Sons and the Tata group over the past decade. “We thank him for his immense contribution during a period of significant change, growth and transformation across the Group,” they said.
The trust added that it will extend full support to Tata Sons in ensuring a smooth, timely and orderly transition of leadership, consistent with the values and long-term interests of Tata Sons and the Tata group.
The statement from SDTT comes a day after Chandrasekaran wrote to the Tata Sons board saying he will not be offering himself up for reappointment as chairman of the Tata Group holding company when his term expires next year.
The announcement came six days before the Tata Sons annual general meeting at which shareholders were to vote on his reappointment as director.
“I have completed 40 years of professional life at the Tata Group. I am grateful for the immensely satisfying opportunity to contribute to this venerable institution,” Chandra wrote in his letter to the board, adding that leading Tata Sons had been “a great honour and a profound responsibility.”
Boards of various trusts under the Tata Trusts umbrella are meeting today apart from Sir Ratan Tata Trust (SRTT) which is banned from meeting under a directive of the Maharashtra Charity Commissioner passed back in May this year.
SDTT, in addition to taking Chandra’s communication on record, and initiating the formation of the Selection Committee is expected to vote on the nomination of a representative for the August 18 Tata Sons AGM.