Debasis Mohapatra
Bengaluru, 18 September 2026
Tata Group stocks are in focus on Friday as a major boardroom rift with regard to re-appointment of N Chandrasekaran as executive chairman another for another five years surfaced.
Tata Sons’ board has voted to reappoint Chandrasekaran as executive chairman for another five-year term this week. His reappointment was opposed by Tata Trusts’ chairman, Noel Tata, who deemed such appointment as illegal.
What is the issue?
At the heart of the issue lies questions revolving around listing of Tata Sons. According to reports, the Reserve Bank of India had earlier rejected the holding company’s application to surrender its registration as a core investment company (CIC). This has opened up possibilities of listing of Tata Sons in the future. However, any listing of Tata Sons is being opposed by Tata Trusts headed by Noel Tata.
According to the statement issued by Tata Trusts, the Tata Sons’ board discussed the RBI’s communication at its September 17 meeting and agreed all available options, not just a listing, should be explored thoroughly.
“The Board agreed that all available options, and not listing alone, should be thoroughly explored and assessed on an immediate basis, with the findings and recommendations presented to the Board,” the statement said.
So, there is fundamental difference in interpretation between Tata Trusts and Tata Sons’ boards over the RBI directive. Tata Trusts believes that the RBI doesn’t explicitly talk about listing of Tata Sons in exchanges.
Against this backdrop, the reappointment of Chandrasekaran has been termed as ‘illegal’ by Tata Trusts.
The Trusts said the resolution to reappoint Chandrasekaran was illegal as the Articles of Association of Tata Sons require a majority of Tata Trusts nominee directors to vote in favour of the appointment of chairman. As Noel Tata voted against the proposal of reappointment of Chandrasekaran as chairman, the Trusts argued that the appointment was illegal.
Most experts see a looming legal battle between the two entities in the coming days with both sticking to their stated positions.
