The Tata group now faces the task of finding a successor to N Chandrasekaran, with Tata Steel MD TV Narendran emerging as a name in the succession discussions, after the Tata Sons chairman decided not to seek reappointment when his current term ends on February 20, 2027, as per a report by Times of India's Reeba Zacharia.
The Sir Dorabji Tata Trust has already moved to begin the succession process, but an unusual hurdle now hangs over the search for the next occupant of Bombay House.
The trust said on Thursday that its nominee directors received an email from Chandrasekaran on August 12 informing them of his decision. The trustees have passed a resolution to set up a Selection Committee “as soon as possible” under the Articles of Association of Tata Sons to recommend the next chairman.
READ ALSO: Tata Trusts to set up selection panel to pick N Chandrasekaran’s successor at Tata Sons
The Sir Dorabji Tata Trust said it respected Chandrasekaran’s decision and thanked him for his contribution to the Tata group.
“We thank him for his immense contribution during a period of significant change, growth and transformation across the Group,” the trust said.
It also promised to support Tata Sons through the change in leadership.
“We extend our full support to Tata Sons in ensuring a smooth, timely and orderly transition of leadership, consistent with the values and long-term interests of Tata Sons and the Tata group,” it said.
Who will choose the next Tata Sons chairman?
According to a report by The Times of India, the chairman of Tata Sons is selected by a five-member committee. Three members are nominated jointly by the Sir Dorabji Tata Trust and Sir Ratan Tata Trust, one is nominated by the Tata Sons board and the fifth is an independent member chosen by the board.
The succession process, however, faces a complication involving the Sir Ratan Tata Trust. The trust is currently unable to convene trustee meetings following a directive from the Maharashtra charity commissioner, according to TOI.
