Tata Trusts recommend N Chandrasekaran for a third term as Tata Sons Chairman amid internal disputes. His executive role is uncertain due to age rules.

According to sources, Tata Trusts has recommended that N Chandrasekaran serve a third term as the Chairman of Tata Sons, the principal investment holding company and promoter of Tata group companies. The development occurs at a time when the trustees of Tata Trusts, the umbrella of philanthropic trusts that control 66% of the equity share capital of Tata Sons, are vertically divided over board appointment and governance issues.

It was not readily apparent when the recommendation was made or what action Tata Sons took in response. During the infighting that threatened to disrupt the operations of Tata Sons and the over USD 180 billion salt-to-semiconductor conglomerate in general, the Tata Trusts board convened last week to address routine matters and refrained from engaging in contentious discussions.

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“A third term has been recommended by the Tata Trusts.” According to an individual who is privy to the situation, the Tata Sons board is responsible for making the decision. The email query was unanswered, and Tata Sons was unable to provide comments.

If the Tata Sons board approves Chandrasekaran’s third term, it is uncertain whether he will continue in an executive role. He will reach the age of 65, and according to reports, executives are required to relinquish their positions after reaching this age. However, they are permitted to continue in non-executive roles until they reach the age of 70 (Tata Group policy).

The board of Tata Sons had approved a second five-year term for Chandrasekaran until February 2027 in February 2022, contingent upon the approval of shareholders. The Shapoorji Pallonji family, the company’s single-largest minority shareholder with an 18.4% stake, abstained from voting on the matter, but the shareholders ultimately authorized it in July of that year.

Chandrasekaran, who had joined the Tata Sons board in October 2016, was appointed chairman in January 2017 and assumed official responsibility in February 2017 following the resignation of Cyrus Mistry as Tata Sons’ Chairman.

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Chandrasekaran was instrumental in the group’s aviation business’s reinvention after effectively acquiring Air India Ltd and introducing super app Tata Neu to capitalize on the rapidly expanding e-commerce market. Despite the fact that he spent a significant portion of his first term fighting the legal battle with Mistry, he was able to capitalize on the opportunities within the rapidly expanding e-commerce sector. Additionally, he has prioritized the advancement of semiconductor and electronics manufacturing in India and the preparation of group companies to be future-ready in the face of AI disruptions.