Tata Trusts kicks off process to pick Chandrasekaran’s successor

MUMBAI: Tata Trusts, the majority stakeholder in Tata Sons, has initiated the process to select its next chairman after N Chandrasekaran announced his decision not to run for re-election at the end of his five-year term in February 2027. The move was announced by Tata Trusts, which controls over 51.4% of Tata Sons, in a statement on Thursday.

The process, which requires a selection committee to be formed, has been put in motion despite a procedural hurdle: Sir Ratan Tata Trust, the second-largest shareholder with a 23.5% stake, cannot hold a meeting due to a restraining order placed against it by the public charities regulator. Tata Trusts chairman Noel Tata, one of the two nominee directors on Tata Sons board, is leading the succession process.

The committee, which must have five members, will be constituted with three members jointly chosen by Sir Dorabji Tata Trust and Sir Ratan Tata Trust and the remaining two selected by the Tata Sons board. The committee can only meet if a majority of SDTT and SRTT nominees are present, a condition that will depend on the lifting of the restraining order against SRTT.