Noel Tata Sets Conditions for N Chandrasekaran's Reappointment

In a notable turn of events within the Tata Group, Noel Tata has reportedly outlined three specific conditions he wishes to see addressed before he offers his support for the reappointment of N Chandrasekaran as chairman of Tata Sons for an additional five-year term. Sources familiar with the matter have disclosed these conditions to CNBC-TV18.

The first condition mentioned pertains to Tata Sons' structure. Noel Tata has reportedly expressed a strong preference against any public listing of the company. This reflects a desire to maintain the closely held nature of the holding company, especially as discussions around its potential listing have gained traction in recent years, fuelled by various regulatory and financial considerations.

Secondly, he is said to have requested assurances that Tata Sons will not engage in further investments in projects that could jeopardise the company’s liquidity. This condition highlights a keen focus on preserving the financial strength of the holding company in light of significant capital expenditure commitments across its various subsidiaries.

The third condition involves a push for resolving ongoing issues with the Shapoorji Pallonji Group, which has been embroiled in a protracted legal and governance dispute with Tata Sons. This call for resolution demonstrates the importance of clearing the air over these contentious matters before moving forward with leadership decisions.

Sources indicate that the internal environment surrounding these discussions has shifted since the Tata Trusts initially recommended the extension of Chandrasekaran's term six months ago. This suggests that the evolving dynamics within the group may have influenced the latest conversations regarding the continuity of leadership.

At the time of reporting, an official confirmation from Tata Sons about these developments had not yet been received. Notably, Tata Sons postponed a decision regarding the extension of N Chandrasekaran's tenure following a board meeting held on Tuesday, with discussions now slated to continue in June. On that occasion, the matter was deferred without a vote due to the lack of consensus.

N Chandrasekaran, who has been at the helm of the Tata Group since 2017, is set to remain chairman until February 2027 as per the earlier resolution passed by the board. His leadership tenure has spanned significant challenges and opportunities for the diverse portfolio of companies under the Tata umbrella.