Tata Sons' Annual General Meeting (AGM)--which was scheduled for today, August 18-- has been called off due to a lack of quorum. Earlier, N Chandrasekaran, the chairman of Tata Sons, announced to not seek reappointment after his tenure will be over in next February. His decision came amid differences among board members on extension of his tenure.

For the first time in Tata Sons' history, the company's annual general meeting has been postponed. The 108th Annual General Meeting (AGM) was scheduled to be held today,  according to jagran.com 

Why Tata Sons AGM Deferred

Reports in PTI, IANS and others said that the meeting was deferred due to lack of quorum. The development occurred due to restrictions involving the Sir Ratan Tata Trust (SRTT).

The reports suggested that the AGM had to be adjourned because Sir Dorabji Tata Trust (SDTT) and Sir Ratan Tata Trust (SRTT) were not able to nominate a representative. They jointly nominated a representative for the AGM.

The Sir Ratan Tata Trust has been put under restrictions through an order from the Maharashtra Charities Commissioner, which has asked the body not to make any major decisions or hold meetings.

Tata Trusts own approximately two-thirds of Tata Sons, and the SDTT and SRTT are two of the most important not-for-profit organisations that make up the larger Tata Trusts.

This delayed meeting comes as Tata Sons prepares for a leadership transition following Chairman N. Chandrasekaran's decision to seek another term. His move has initiated the process of identifying a successor.

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Noel Tata, Tata Trusts are key To Select Successor

The succession process will be closely watched, given the influence of the Tata Trusts – which together hold approximately 66 per cent of Tata Sons.

The report states that as chairman of the Tata Trusts, Noel Tata has emerged as a key figure in the selection of the next chairman of Tata Sons.

However, media reports quoting sources have stated that the appointment will ultimately be made through a formal committee system as stipulated in Tata Sons' Articles of Association.

(With Inputs From IANS and PTI)