Tata Sons chairman N Chandrasekaran considers stepping down ahead of AGM: Report

Tata Sons chairman N Chandrasekaran has reportedly discussed with close associates the possibility of stepping down before the company’s annual general meeting (AGM) scheduled for August 18.

According to a report in The Economic Times that cited sources, this move comes amid concerns over a potentially contentious vote at the meeting.

Chandrasekaran’s term as chairman is set to continue until February 2027, but his position depends on his reappointment as a director on the Tata Sons board. Tata Trusts chairman Noel Tata is reportedly opposed to his continuation, adding uncertainty to how the trusts will vote, the report added.

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The AGM itself faces legal questions as Sir Ratan Tata Trust (SRTT), a majority owner of Tata Sons along with Sir Dorabji Tata Trust, is currently suspended from decision-making by the Maharashtra Charity Commissioner. This suspension follows an inquiry into alleged violations of the Maharashtra Charitable Trusts Act.

According to Tata Sons’ Articles of Association, trustees nominated jointly by the two trusts have the authority to vote at the AGM. However, with SRTT suspended, it is unclear if it can nominate trustees without permission from the charity commissioner.

Several SRTT trustees, including Noel Tata, Darius Khambata and Jehangir Jehangir, have requested permission to attend the AGM, stating that their presence is necessary to protect the trust’s interests, the report said.

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If the AGM proceeds and shareholders do not reappoint Chandrasekaran as director, his chairmanship could end abruptly, leading to an unplanned leadership change at India’s largest business group.

The possibility of Chandrasekaran stepping down marks a shift from about a year ago, when Tata Trusts trustees had unanimously recommended a five-year term for him. His reappointment was deferred by the Tata Sons board in February after Noel Tata raised concerns about the performance of new businesses and suggested a two-year executive term.

The current uncertainty follows tensions within the group since Ratan Tata’s death in late 2024, including disagreements among trustees and the departure of several members.