Tata Sons chairman Natarajan Chandrasekaran has discussed with close associates the possibility of stepping down rather than face a potentially contentious shareholder vote on Aug 18, the Economic Times (ET) reported.
The deliberations come amid uncertainty over how Tata Trusts, the company’s controlling shareholder, will vote and whether the meeting itself can proceed, according to the ET report citing people familiar with the discussions.
Chandrasekaran’s term as chairman runs until February 2027, but he must be re-appointed as a director to remain in the role. The report said the outcome is clouded by opposition from Noel Tata and questions over whether the suspended Sir Ratan Tata Trust – one of several trusts that make up Tata Trusts – can participate in board nominations.
In February, a board meeting expected to approve Chandrasekaran’s third term was deferred after Noel Tata sought assurances on curbing debt, avoiding a public listing of Tata Sons and resolving issues with the Shapoorji Pallonji Group. That led Chandra, as he is widely known, to recommend delaying the decision on his re-appointment to maintain consensus with Tata Trusts, Bloomberg News had reported earlier.
The newspaper said Chandrasekaran, the Shapoorji Pallonji Group and Noel Tata did not respond to e-mailed queries. BLOOMBERG
