Chandrasekaran accepts re-appointment as Tata Son’s chairman, Tata Trusts terms it illegal

Tata Sons Private Ltd’s Executive Chairman N. Chandrasekaran at the company’s board meeting on Thursday (September 17, 2026) acceded to the Board’s request to reconsider his decision.

On August 12, 2026, he expressed his desire not to seek reappointment at the expiry of his tenure stating that one board member — Noel Tata — had not approved it.

“The Board thereafter resolved by a majority vote to re-appoint him as Executive Chairman for a further term of five years upon the expiry of his current tenure [in February 2027],” Tata Sons said in a statement.

It is learnt that all board members, other than Noel Tata, who is a board member and Chairman of Tata Trusts, voted for the reappointment of Mr. Chandrasekaran. Tata Trusts which holds 66% stake in Tata Sons has termed this reappointment and decision as illegal.

The Board members of Tata Sons include Venu Srinivasan, Harish Manwani, Saurabh Agarwal and Anita M. George apart from Mr. Noel Tata and Mr. Chandrasekaran.

“The Board also resolved to initiate steps to comply with the applicable RBI Guidelines and will seek guidance from RBI, Tata Trusts and other stakeholders on applicable compliance requirements,” it said.

On Saturday (September 12, 2026), the RBI had rejected Tata Son’s application for de-registration of it’s Core Investment Company NBFC license and had asked it to immediately comply with the regulations which is listing.

As per the statement the Tata Sons Board had received from Tata Trusts their unanimous resolution dated July 28, 2025, expressing their appreciation of the Chairman of Tata Sons, Mr. Chandrasekaran “for his stewardship of the Group from 2017 onwards.”

“In recognition of these efforts the Tata Trusts resolved that he be re-appointed as Executive Chairman for a further term of five years upon the expiry of his current term,” Tata Sons statement said.

Subsequently, in September 2025 the Board of Tata Sons agreed in principle to re-appoint Mr Chandrasekaran as Executive Chairman for a further term of five years.

“Pursuant to applicable provisions of law, the Board decided to obtain the relevant formal approval in February 2026. But in the absence of unanimity, the resolution was deferred for decision. In subsequent Board meetings in May 2026 and June 2026, this matter was discussed but was not resolved,” the statement said.

In view of the above, on August 12, 2026, Mr. Chandrasekaran had opted not to offer himself for re-appointment upon the expiry of his current term. But on September 3, 2026, the Nomination Remuneration Committee (NRC) of the Board of Tata Sons met to discuss, his letter and the issue of his re-appointment as Executive Chairman. 

“After due deliberation and in recognition of his contributions and the larger interests of the Tata Group, the NRC unanimously resolved to request him to reconsider his decision and to recommend him for re-appointment at the next Board meeting [that took place on Thursday]” the statement added.

The board meeting’s decisions and the lack of unanimity for this crucial re-appointment especially when the chairman of Tata Trusts, that controls 66% stake in Tata Sons, was voted out and overruled, brings into fore the acrimony in the highest body of the Tata Group.