Chandrasekaran reappointed Tata Sons chairman in U-turn weeks after seeking exit | Business News

The board of India's Tata Sons on Thursday said it has approved a fresh five-year term for N Chandrasekaran as executive chairman, reversing his decision last month not to seek reappointment.The group said Chandrasekaran was “unanimously” asked to reconsider his decision, in recognition of his contributions and the larger interests of the Tata Group, at the Nomination Remuneration Committee (NRC) meeting of the board on September 3. At the meeting of the Board on September 17, “Chandra accede” to the Board’s request to re-consider his decision," according to the statement.“The Board received from Tata Trusts their unanimous resolution dated July 28, 2025 expressing their appreciation of the Chairman of Tata Sons, Mr. N. Chandrasekaran (Chandra) 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,” the statement read.Tata Sons met on Thursday, for the first time after Chandrasekaran decided not to seek a new term, with what an earlier Mint report described as a clear split on the table – Noel Tata, representing majority shareholder Tata Trusts, against chairman Chandrasekaran and the board—over averting a public listing and reassessing the holding company chair’s tenure.Chandrasekaran's current term is ending on February 20 next year.Among the other several firsts for the meeting, it took place less than a week after the Reserve Bank of India ordered the holding company of India’s largest group to list on the stock market.“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. Subsequently, in September 2025 the Board of Tata Sons agreed in principle to re-appoint Chandra 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. In February 2026, 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 read.Noel Tata's oppositionBefore the meeting, a spokesperson had unequivocally stated: “Please note that there is no change in the stand taken by SDTT (Sir Dorabji Tata Trust) in its board meeting held on 13th August 2026, respecting the decision of Mr Chandrasekaran to not offer himself for reappointment and seeking initiation of steps for appointment of a new chairman, as communicated by the SDTT to the company secretary, Tata Sons on the same day,” Mint reported.The report had cited two executives familiar with the situation, who said Noel Tata, who has been outspoken in recent board meetings, was expected to share the Trusts’ views as he did on February 24 when he objected to Chandrasekaran’s reappointment.He may oppose any proposal to consider another term for Chandrasekaran, just as he did at the last Tata Sons board meeting on 24 February, a senior Tata Group executive was quoted as saying.Later on Thursday, Reuters and PTI news agency reported that Noel Tata, chairman of Tata Trusts, which along with affiliated trusts controls about 66 per cent of Tata Sons, indeed vote against the reappointment but the resolution was carried by a majority. They reports cited sources.Announcing his decision to step down in August this year, Chandrasekaran had said in his statement, “I have completed 40 years of professional life at the Tata Group. I am grateful for the immensely satisfying opportunity to contribute to this venerable institution.”“I have decided not to offer myself for reappointment when my term ends on February 20, 2027,” he had said.