Tata Sons board approves 5-year term extension for N Chandra; moves ahead with RBI-mandated listing

However, Tata Trusts disputed the validity of the reappointment resolution, calling it a “legal nullity” under Tata Sons’ Articles of Association. In a statement issued on Thursday, the Trusts said four directors voted in favour of the proposal, while Noel Tata voted against it.

Tata group stocks surged following the development. Tata Chemical surged 9.21% in the intraday trade. The share price of Tata Investment Corporation also gained 7.22%.

According to Indian Express, the decisions will now require ratification at Tata Sons’ annual general meeting (AGM). Venu Srinivasan and Noel Tata, who represent Tata Trusts on the Tata Sons board, are among the key shareholders involved in the process. Srinivasan supported both Chandrasekaran’s reappointment and the listing proposal, the report stated. If the AGM rejects either proposal, the decisions will not take effect under the Companies Act.

The decisions come amid differences over leadership and the company’s continued status as an unlisted entity. The RBI rejected Tata Sons’ application last week to surrender its non-banking financial company (NBFC) registration. The decision has revived the prospect of a stock market listing, which Tata Sons has sought to avoid for more than a year.

The proposed listing of Tata Sons has been a key point of contention within the Tata group. Tata Trusts, which holds about 66% in the holding company, has opposed an IPO, while the Shapoorji Pallonji Group, which owns around 18.4%, has favoured a listing to unlock value and improve liquidity.

The listing debate has also coincided with uncertainty over the company’s leadership. Chandrasekaran, who became Tata Sons chairman in February 2017, was reappointed for a second five-year term in 2022. Tata Trusts supported his continuation for a third term in 2025 but the proposal stalled in February 2026 after Noel Tata raised concerns over businesses including Air India and Tata Digital. Chandrasekaran later said in August that he would not seek another term.

Full statement from Tata Sons

“The Board received from Tata Trusts their unanimous resolution dated July 28, 2025 expressing their appreciation of the Chairman of Tata Sons, Mr. N. Chandrasekaran (Chandra) for his stewardship of the Group from 2017 onwards. In recognition of these efforts the Tata Trusts resolved that he be re-appointed as Executive Chairman for a further term of five years upon the expiry of his current term.

Subsequently, in September 2025 the Board of Tata Sons agreed in principle to re-appoint Chandra as Executive Chairman for a further term of five years. Pursuant to applicable provisions of law, the Board decided to obtain the relevant formal approval in February 2026.

In February 2026, in the absence of unanimity, the resolution was deferred for decision. In subsequent Board meetings in May 2026 and June 2026, this matter was discussed but was not resolved.

In view of the above, on August 12, 2026, Chandra opted not to offer himself for re-appointment upon the expiry of his current term. 

On September 3, 2026, the Nomination Remuneration Committee (NRC) of the Board of Tata Sons met to discuss, the aforesaid letter and discuss the issue of re-appointment of Chandra as Executive Chairman. After due deliberation and in recognition of his contributions and the larger interests of the Tata Group, the NRC unanimously resolved to request him to reconsider his decision and to recommend him for re-appointment at the next Board meeting.

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.”