The succession process at Tata Sons has formally begun after the Sir Dorabji Tata Trust (SDTT), which owns nearly 28 per cent of the Tata Group holding company, passed a resolution to initiate the formation of a committee to identify N Chandrasekaran’s successor.
Chandrasekaran’s term as chairman of Tata Sons is scheduled to end on February 20, 2027. He had informed the Tata Sons board a day earlier that he would not offer himself for reappointment as chairman when his current term expires.
The trustees of SDTT have decided to set up a Selection Committee in accordance with the Articles of Association of Tata Sons. The committee will recommend a candidate for appointment as the next chairman of the board of directors.
“The Trustees of the Sir Dorabji Tata Trust have passed a resolution to initiate the setting up of a Selection Committee as soon as possible in accordance with the Articles of Association of Tata Sons, for the purpose of recommending a person for appointment as the new Chairman of the Board of Directors,” the trust said in a statement, reported The Financial Express.
SDTT also said it would extend its full support to Tata Sons during the transition to ensure that the change in leadership is smooth, timely and orderly. The process, it added, would remain aligned with the values and long-term interests of Tata Sons and the Tata group.
The trust also placed on record its appreciation for Chandrasekaran’s leadership and contribution to Tata Sons and the Tata group over the past decade.
“We thank him for his immense contribution during a period of significant change, growth and transformation across the Group,” SDTT said.
Chandrasekaran’s decision not to seek another term came six days before the Tata Sons annual general meeting, where shareholders were scheduled to vote on his reappointment as a director.
In his letter to the board, Chandrasekaran said he had completed 40 years of professional life at the Tata Group. He described his tenure leading Tata Sons as “a great honour and a profound responsibility” and expressed gratitude for the opportunity to contribute to the group.
The development comes as boards of several trusts under the Tata Trusts umbrella meet on Thursday. The Sir Ratan Tata Trust (SRTT), however, is barred from holding a meeting under a directive issued by the Maharashtra Charity Commissioner in May this year.
SDTT is expected to take up Chandrasekaran’s communication as part of its proceedings. It is also expected to vote on the nomination of its representative for the Tata Sons annual general meeting scheduled for August 18.
The SDTT resolution marks the beginning of the formal process for identifying Chandrasekaran’s successor as chairman of Tata Sons.
