New Delhi, 17 September (H.S.): The tenure of N. Chandrasekaran, chairman of Tata Group’s holding company Tata Sons, has been extended until 2032. The board of Tata Sons Private Limited on Thursday approved, by a majority vote, another five-year term for Chandrasekaran. The board’s decision reverses Chandrasekaran’s decision last month not to seek another term.

According to sources, the Tata Sons board meeting held in Mumbai approved another five-year term for Chandrasekaran. Members of the board believe that continuity in leadership will also strengthen the confidence of potential investors. However, Chandrasekaran had told the board a few weeks ago that he was not keen to continue as chairman after completing his second term.

The decision to reappoint Chandrasekaran as chairman of Tata Sons comes after the Reserve Bank of India (RBI) rejected the company’s application last week seeking cancellation of its registration as a non-banking financial company (NBFC). Chandrasekaran’s reappointment has once again raised the possibility of the company being listed on the stock market. For more than a year, the company had been seeking to avoid a market listing. In this process, it has also repaid debt amounting to more than Rs 21,000 crore.

Noel Tata, chairman of Tata Trusts, voted against the proposal to reappoint Chandrasekaran, but the resolution was passed by a majority. Tata Trusts, led by Noel Tata, along with affiliated trusts, hold approximately 66 per cent of the stake in Tata Sons.

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Hindusthan Samachar / Jun Sarkar