'It is now time to move on': Noel Tata opposes Chandrasekaran's fresh term at Tata Sons

Tata Trusts chairman Noel Tata on Thursday opposed the reappointment of N Chandrasekaran as executive chairman of Tata Sons for another five years. He said Chandrasekaran's earlier decision not to seek another term had been accepted by the majority shareholder and "has attained finality".

The Tata Sons board approved a fresh five-year term for Chandrasekaran at a meeting in Mumbai on Thursday and also set in motion the process to list the group's holding company.

Noel Tata voted against the reappointment.

Chandrasekaran's current term ends on February 20, 2027. He had told the board in August that he did not intend to seek another term.

In a statement to the Tata Sons board, Noel Tata said Chandrasekaran's August 12 communication was his "own decision" and had been "freely taken and clearly expressed".

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Tata Trusts Had Asked For Successor Process

Noel Tata said the letter was subsequently made public without prior deliberation with Tata Trusts, which hold approximately 66% of Tata Sons' equity. He said the Trusts had accepted Chandrasekaran's decision and formally asked Tata Sons to constitute a selection committee under its Articles of Association to appoint his successor.

"A resolution now for re-appointment moved at this meeting would therefore ask this Board to set aside three things at once: the Chairman's own stated decision, the acceptance of that decision by the majority shareholder, and the further process which that shareholder has asked this Company to set in motion," Noel Tata said.

He also argued that the reappointment question was premature because Chandrasekaran's position as a director remained uncertain. A general meeting to decide that issue could not proceed for lack of quorum, he said. "We cannot put the cart before the horse," Noel Tata said.

He warned that a decision on the chairmanship could face "serious legal challenge" if Chandrasekaran's position as a director was later found to be in doubt.

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'The Page Has Turned'

Noel Tata said the Trusts' acceptance of Chandrasekaran's decision had already been formally communicated. "The Group's employees, its lenders, its counterparties and the market have all proceeded upon it. So, has the majority shareholder. The page has turned," he said.

He also urged the board to keep the company's regulatory matters separate from the succession process.

One issue concerns Tata Sons' structure and its obligations to the regulator, while the other concerns leadership and succession, he said. Neither, he argued, should determine the outcome of the other.

Tata Trusts Call Move 'Illegal'

Tata Trusts separately reiterated its position that Chandrasekaran's decision not to seek reappointment had been accepted and "has attained finality".

The Trusts also called the reappointment of Chandrasekaran "illegal", according to its statement.

Noel Tata concluded by saying the Trusts had accepted Chandrasekaran's decision and that it was time to move forward.

"In so far as the Tata Trusts are concerned, the intimation made by the Chairman vide his communication dated 12 August 2026 has been duly accepted and has attained finality. The Chairman has conveyed his decision; the shareholders have conveyed their acceptance; it is now time to move on," he said.

The Tata Trusts chairman requested that his statement be recorded in full in the minutes of the meeting and circulated to all directors with the draft minutes.