Tata Trusts to set up selection committee for new Tata Sons chairman
Trusts begin succession process after N Chandrasekaran decides not to seek reappointment beyond February 2027
Tata Trusts on Thursday said it would establish a selection committee to recommend the next chairman of Tata Sons after N Chandrasekaran decided not to seek reappointment when his current term ends on February 20, 2027.
According to the Tata Sons Articles of Association, the trustees of the Sir Dorabji Tata Trust (SDTT) have decided to initiate the process “as soon as possible”.
The development came a day after Chandrasekaran informed the Tata Sons board that he would not seek another term.
The SDTT acknowledged Chandrasekaran’s contribution to Tata Sons and the Tata group and said it “respects Chandrasekaran’s decision not to offer himself for re-appointment”.
“We put on record our sincere gratitude for his contribution and stewardship of Tata Sons and the Tata group over the past ten years,” the Trust said.
It further said that, in keeping with the principles and long-term objectives of Tata Sons and the Tata group, it supported the company in ensuring “a smooth, timely, and orderly transition of leadership”.
The Tata Sons board had failed to reach a consensus on Chandrasekaran’s proposed continuation. He had deferred his decision after the proposal for his next term was not unanimously approved at a board meeting on February 24.
In his letter to the Tata Sons board, Chandrasekaran said no resolution had been reached in the six months since that meeting.
He also pointed out that Tata Sons had several significant projects nearing completion and said it was important for partners, employees, investors and other stakeholders to have clarity on leadership.
The succession process comes ahead of the Tata Sons annual general meeting scheduled for August 18. Chandrasekaran’s continuation as a director following his retirement by rotation was to be approved by shareholders at the AGM.
