Tata Sons chairman N Chandrasekaran steps down ahead of key shareholder vote

Mumbai: Natarajan Chandrasekaran has resigned as chairman of Tata Sons Pvt. in anticipation of a contentious annual shareholder vote, according to a source familiar with the matter. This decision plunges the conglomerate into uncertainty as it spearheads India's push into high-tech sectors. The annual general meeting of Tata Sons, scheduled for August 18, is now in doubt as questions arise regarding the holding company's ability to secure the necessary quorum to hold the meeting.

Shareholders were to vote on Chandrasekaran's reappointment as director, a legal prerequisite for him to retain his position as chairman. He will remain in his role until February 2027, as per the source, who requested anonymity due to company rules. Tata Sons' spokesperson did not immediately respond to Chandrasekaran's resignation.

Shares of Tata Group companies plummeted in Mumbai trading, with Tata Consultancy Services Ltd. witnessing a decline of up to 5.1%. The reappointment of Chandrasekaran faced opposition from Noel Tata, chairman of Tata Trusts, who is the controlling shareholder of Tata Sons. The Economic Times reported earlier that the trust questioned whether it could take part in selecting Tata Sons board members.