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Tata Sons board extends Chandrasekaran for 5 years
BBC News··17 Sept
Tata Sons said N Chandrasekaran will be reappointed chairman for a further five years after he agreed to reconsider stepping down. Noel Tata, chairman of Tata Trusts which owns 66 percent of Tata Sons, called the reappointment illegal. Four directors voted in favour and he voted against. The board also agreed to comply with an RBI listing directive.
Prism
What It Means For You
- Listed Tata company shares rose after news of Chandrasekaran's reappointment, BBC reported.
- Tata Trusts owns 66 percent of Tata Sons, so Trust nominee votes shape who leads the parent.
- An RBI directive that effectively calls for a mandatory listing of Tata Sons remains in play.
What's Happening
- Chandrasekaran had said last month he would not seek reappointment when his term ended in February.
- On Thursday the board said he agreed to reconsider and would be reappointed after his term expired.
- Noel Tata said company articles require a majority of Trusts nominee directors to back such a resolution.
How the Board Split
- Tata Trusts has three nominees on the Tata Sons board.
- BBC reported disputes over board nominations, funding approvals and a public listing of Tata Sons.
- Earlier this week the RBI rejected the group's application to deregister as an NBFC.
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