Tata Sons board has reportedly approved a fresh five-year term for ‌N. Chandrasekaran ⁠as executive chairman of the Tata Group holding company. Chandrasekaran had said earlier that he won’t seek reappointment after his tenure ends in February next year; however, the board reversed his decision, Reuters reported, citing sources. 

Chandrasekaran decided after board members did not take a call on his succession in a previous meeting.  

The decision was reversed just days after the Reserve Bank of India rejected a request for an exemption from listing rules for Tata Sons. The reason for the change was not immediately clear, the sources said, declining to be named as they were not authorised to speak to the media.

Chandrasekaran, whose current term ends in February 2027, had said last month that he would not seek re-election. Chandrasekaran’s decision to seek re-election has been followed by months of tension over the group’s strategy and governance with the Tata Trusts, a charitable trust that controls 66% of Tata Sons, Reuters said. 

Chandrasekaran, who was appointed chairman of Tata Sons in 2017, was reappointed for a second five-year term in 2022. 

Also Read: 'Illegal Decision': Noel Tata Disapproves Chandrasekaran's Reappointment In New Twist To Tata Sons' Leadership Woes

Board Sets Motion For Tata Sons' Listing

According to a PTI report, the board of Tata Sons Ltd has also initiated the process of listing the group's holding company on the stock market. However, the decisions, including Chandrasekaran's reappointment and the process of listing Tata Sons, are likely to face a challenge from Tata Trusts, which holds a majority stake in Tata Sons.

The board met in Mumbai on Thursday for about three hours, weeks after Chandrasekaran told directors in August that he would not seek reappointment to the top post.

Meanwhile, the board has asked him to reconsider his decision after the vote, PTI reported, citing people familiar with the discussions. The board has also agreed to list Tata Sons, the holding company of the group, which has interests in salt, software and cars.

However, both these decisions are subject to approval at the company's AGM.

(With input from Agencies)