The board of Tata Sons on Thursday granted a five-year extension to N Chandrasekaran as executive chairman, despite opposition from Noel Tata. The board also decided to proceed with the listing of the Tata Group’s holding company in accordance with the Reserve Bank of India (RBI) directive, according to a source privy to the matter.
The source said the resolutions will now require approval at the annual general meeting (AGM) of Tata Sons. Venu Srinivasan and Noel Tata, who represent Tata Trusts on the Tata Sons board, are key shareholders involved in the process.
The source indicated that Srinivasan supported both Chandrasekaran’s reappointment and the listing proposal. If the AGM rejects either proposal, the decisions will not be valid under the Companies Act.
The decisions come amid disagreements over the company’s leadership and its continued status as an unlisted entity. Last week, the RBI rejected Tata Sons’ request to surrender its registration as a non-banking financial company (NBFC). The decision has revived the possibility of a stock market listing, which Tata Sons has sought to avoid for more than a year.
The proposed IPO of Tata Sons has been a major source of disagreement within the Tata Group. Tata Trusts, which owns approximately 66 per cent of the holding company, has opposed an IPO, while the Shapoorji Pallonji Group, which holds about 18.4 per cent, has supported a listing to enhance value and improve liquidity.
The listing debate has also coincided with concerns over the company’s leadership. Chandrasekaran was appointed chairman of Tata Sons in February 2017 and received a second five-year term in 2022.
Meanwhile, shares of Tata Group companies rose sharply following the news. Tata Chemicals climbed 9.21 per cent during intraday trading, while Tata Investment Corporation gained 7.22 per cent.
Tata Trusts backed Chandrasekaran’s extension for a third term in 2025, but the proposal faltered in February 2026 after Noel Tata raised concerns about companies such as Air India and Tata Digital. Chandrasekaran said in August that he would not seek another term.
Noel Tata opposes Chandrasekaran’s reappointment
Tata Trusts opposed the resolution seeking N Chandrasekaran’s reappointment as chairman at the board meeting, arguing that it was a legal nullity under the Articles of Association of Tata Sons.
Four Tata Sons directors supported the reappointment, while Noel Tata opposed it.
“Tata Trusts stated that the procedure for appointing a chairman under the Articles of Association requires a majority of the Trusts’ nominee directors to approve the resolution.”
It stated that the procedure applies to both the initial appointment and the reappointment of an incumbent chairman.
According to the Trust, the board cannot legally convene a meeting or approve a resolution concerning the chairman’s appointment or reappointment unless both nominee directors are present. It further stated that such a resolution cannot be validly passed without the favourable votes of both nominee directors.
Venu Srinivasan and Noel Tata are the Tata Trusts’ nominees on the Tata Sons board. Tata Trusts stated that since Noel Tata, one of the Trust’s nominee directors, opposed the proposal, the resolution was legally invalid and baseless.
Tata Trusts emphasised that Chandrasekaran’s decision not to seek reappointment after his current term ends on February 20, 2027, had been formally acknowledged and had brought the matter to a definitive conclusion.
“On August 12, 2026, Chandrasekaran communicated to the Tata Sons Board his own decision not to offer himself for reappointment—a decision that was freely taken, clearly expressed and not the outcome of any process of review,” Tata Trusts said.
The Trust stated that the decision had been disclosed without prior notice or discussions with the company’s shareholders.
“Once a decision like this is announced publicly, there are irreversible consequences, as the group’s employees, lenders, counterparties, market and majority shareholder have all acted based on it,” it stated.
