Tata Sons board backs five-year extension for Chandrasekaran; Noel Tata opposes

The Tata Sons board on Thursday approved extending N Chandrasekaran's five-year tenure as chairman for another five years, facing opposition from Tata Trusts Chairman Noel Tata. The board also decided to list the company, as mandated by the Reserve Bank of India. This decision will require ratification at Tata Sons' annual general meeting, where Tata Trusts hold 66% stake.

The issue is a part of a larger governance dispute within the Tata Group, with concerns over capital allocation, losses in unlisted businesses and the future structure of Tata Sons. The decision comes in the wake of the RBI rejecting Tata Sons' request to surrender its Core Investment Company registration, pushing the company towards a public listing.

The Tata Sons AGM, originally scheduled for August 18, was adjourned due to a lack of quorum, further complicating the situation as Chandrasekaran's reappointment as a director and his continuation as chairman need approval at the AGM. Noel Tata and the Tata Trusts could oppose the resolution at the AGM, potentially leading to a decisive test of the balance of power within Tata Sons.