Tata Trusts, Tata Sons Meetings Approach as Chairman Selection Process Remains on Hold

A series of meetings is coming up at the Tata group as the process of finding the next chairman of Tata Sons remains unresolved following N Chandrasekaran’s decision not to seek a third term. 

Invest in Indian Markets and Unlock Future Potential With 5paisa!

Open Account Now

Trustees of Sir Dorabji Tata Trust (SDTT) are scheduled to meet on Friday, followed by a Tata Sons board meeting on September 17. 

The timing puts both meetings in focus, although the immediate agenda at SDTT is expected to remain routine. The Tata Sons leadership issue is unlikely to be discussed at Friday’s meeting, according to the report. 

Friday’s Meeting Involving SDTT Trustees Only 

The Tata Trusts meeting that is scheduled in the coming days will comprise trustees of SDTT, which is one of the two core trusts of Tata Trusts. 

The other core trust, Sir Ratan Tata Trust (SRTT), is still unable to conduct meetings or make decisions due to an order issued against it by Maharashtra Charity Commissioner some months ago for certain violations related to perpetual trustees. 

The Tata Trusts together own about 66% stake in Tata Sons, which in turn controls the Tata group. 

As regards Friday’s meeting, the discussions are likely to focus on project and programme approvals. 

Meeting of the Tata Sons Board on September 17 

The next important date is September 17 when the board of Tata Sons will convene. 

This meeting will be their first after Chandrasekaran, in his letter to the board on August 12, told them he would not nominate himself for his third term as chairman. 

Chandrasekaran, in his letter to the board, stated that one board member was against his nomination and the issue had been hanging fire for six months. 

He is currently in his second and last term as the chairman of Tata Sons until February 20, 2027. 

Search for New Chairman Has Yet to Move Forward 

SDTT trustees met a day after Chandrasekaran’s August 12 announcement and passed a resolution to establish a selection committee for the next Tata Sons chairman. 

The process has not progressed since then. 

Under Tata Sons’ Articles of Association, SRTT and SDTT must jointly nominate three representatives to a five-member selection committee. 

The restriction on SRTT meetings has prevented that joint nomination from taking place, leaving the selection process at a standstill. 

That makes the status of SRTT important to how the succession process eventually moves forward. 

SRTT Freeze Also Affected Tata Sons AGM 

The restrictions on SRTT have already had consequences beyond the chairman-selection process. 

Last month, they affected Tata Sons’ annual general meeting for the first time in the company’s century-old history. 

Under Tata Sons’ Articles of Association, its AGM requires a representative jointly nominated by SDTT and SRTT. 

Following the disruption, the Registrar of Companies under the Ministry of Corporate Affairs granted Tata Sons a three-month extension to hold its AGM. The company now has until the end of 2026 to conduct the meeting. 

For now, the Tata group heads into a busy stretch of meetings without a resolution to its leadership question. Friday’s SDTT gathering is expected to concentrate on routine business, while the September 17 Tata Sons board meeting will be the first since Chandrasekaran formally informed directors that he would not seek another term.