N Chandrasekaran’s reappointment: Tata board believes veteran’s association would benefit the company immensely

Ahead of Tata Sons Chairman N Chandrasekaran’s reappointment that would be taken up in the conglomerate’s Annual General Meeting that is scheduled to be held on August 18.

The veteran’s reappointment has meanwhile been the focus of many discussions outside of the company’s board rooms. However, in the annual report, Tata said that the board was optimistic and saw great value in a renewed term for Chandrasekaran.

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The annual report stated: “Mr N Chandrasekaran is liable to retire by rotation at the forthcoming Annual General Meeting and being eligible, has offered himself for re-appointment. Considering the skills, experience, and knowledge of Mr N Chandrasekaran, the Board was of the opinion that his continued association would immensely benefit the Company and hence recommends his re-appointment.” It said that his reappointment is already part of the notice convening the AGM.

Chandrasekaran’s reappointment was put on hold as Tata Trusts chairman Noel Tata told the board that many key issues remained unresolved. Noel Tata had reportedly sought greater clarity from Chandrasekaran on the group’s five-year strategic roadmap, and on the roadmap to offer an exit to the Shapoorji Pallonji Group without Tata Sons going public.

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Noel Tata had reportedly raised questions on the high capex for new businesses, including semiconductors, and the losses incurred by Tata Digital and Air India.

For Chandrasekaran to be reappointed, the decision must be unanimous.