N Chandrasekaran’s plan to step down as Tata Sons chairman has created divisions on the board, with members split on whether to urge him to stay or proceed with finding a replacement, according to The Economic Times. What began as a routine leadership change has grown complex. Some directors want to ask Chandrasekaran to reconsider, while others prefer to accept his choice and begin succession planning right away. Tata Trusts has started forming a selection committee for the next chairman. However, the Sir Ratan Tata Trust faces restrictions on holding meetings. Noel Tata, who leads Tata Trusts, is also set to handle talks with the Reserve Bank of India regarding the company’s regulatory status and unlisted position. Chandrasekaran notified the board on August 12 that he would not seek reappointment when his term ends in February 2027. The move followed months of uncertainty about a third term. The board had delayed a proposal for another five years due to lack of full support. Chandrasekaran then decided against pursuing reappointment. His nearly ten-year tenure ends amid reported differences with Noel Tata on strategy, governance, new ventures, and appointments. Issues include losses at Air India, digital operations, and semiconductor plans. The two reportedly briefed government officials separately before the announcement. Debate continues inside the board on whether to accept the decision or seek reconsideration. Some directors suggested a vote, though others noted a personal choice cannot be voted on. Tata Trusts has asked the board to note the decision and form a selection committee under the company’s articles. The Sir Dorabji Tata Trust supports starting the process immediately. Yet the committee requires joint nomination from two trusts, and the Sir Ratan Tata Trust cannot convene meetings due to an order from the Maharashtra Charity Commissioner.
