Tata Sons board likely to meet on September 17, Chandrasekaran exit may take center stage

The board of Tata Sons is likely to convene on September 17 for a meeting where the potential exit of Chairman N Chandrasekaran could be taken up for deliberation, according to a Moneycontrol report.

The upcoming gathering comes against the backdrop of ongoing succession planning within the salt-to-software conglomerate. Sir Dorabji Tata Trust (SDTT) has already set the succession mechanism in motion for Tata Sons after accepting Chandrasekaran’s decision not to seek a third term at the helm, the report added.

Chandrasekaran, who took charge as Chairman of Tata Sons in February 2017 after heading Tata Consultancy Services (TCS), was reappointed for a second five-year term in February 2022. As his current term nears its end, the board is anticipated to evaluate the roadmap for a smooth leadership transition across the group’s key operating entities.

The scheduled meeting is expected to focus on formalising the next steps for succession to ensure stability during the leadership handover.

Earlier this month, N Chandrasekaran, Chairman, Tata Sons, said he was not offering himself for a third term. He took charge in 2017 and is in the midst of his second five-year term. That was followed by a statement from the Sir Dorabji Tata Trust (SDTT) saying that it had passed a resolution to initiate the setting up of a selection committee to recommend a person as the new Chairman.

In line with Tata Sons’ Articles of Association, both Sir Ratan Tata Trusts (SRTT) and SDTT will jointly nominate three members to a five-member selection committee. One member each will come from Tata Sons and one external member. There is also the reappointment of Chandrasekaran as a Tata Sons Director that needs to be decided.

Chandrasekaran's decision not to seek another term has brought the ongoing power tussle in the Tata Group into focus. His decision is likely to have wide-ranging consequences for the Tata Group, coming at a time when questions over leadership continuity are already mounting.