Tata Trusts said in a statement on Thursday that it accepted Tata Sons Chairman N Chandrasekaran's decision not to seek another term after his current tenure ends in February 2027. It also said its trustees had passed a resolution to form a selection committee that will recommend his successor.
A day earlier, Chandrasekaran announced that he would leave the post when his current term ends. He cited the lack of unanimous support from the holding company's board for his reappointment.
Tata Trusts on Chandrasekaran's decision
In a press release, Tata Trusts said Chandrasekaran had emailed the nominee directors to inform them that he would not seek reappointment as chairman upon the expiry of his current tenure on February 20, 2027.
“The Sir Dorabji Tata Trust (SDTT) respects Mr. Chandrasekaran’s decision not to offer himself for reappointment. We place on record our deepest appreciation for his contribution and stewardship of Tata Sons and the Tata group over the past decade," the release said.
It said its trustees had also passed a resolution to form a selection committee that would recommend the next chairman of Tata Sons.
{{/usCountry}}It said its trustees had also passed a resolution to form a selection committee that would recommend the next chairman of Tata Sons.
{{/usCountry}}“We extend our full support to Tata Sons in ensuring a smooth, timely and orderly transition of leadership, consistent with the values and long-term interests of Tata Sons and the Tata group,” it added.
Tata Sons Chairman steps down from top post
In a statement, Chandrasekaran said, “I have completed 40 years of professional life at the Tata Group. I am grateful for the immensely satisfying opportunity to contribute to this venerable institution.”
“I have decided not to offer myself for reappointment when my term ends on February 20, 2027,” he said.
The announcement came just days before the Tata Sons annual general meeting, which is scheduled for August 18. It also took Tata Trusts chairman Noel Tata and most of the trustees by surprise, two executives familiar with the matter told HT. Tata Trusts holds a 65.9% stake in Tata Sons.
Lack of unanimous support cited as reason
In his resignation letter on Wednesday, Chandrasekaran said he decided against seeking another term after the proposal for his reappointment failed to receive unanimous backing from the board.
"Sir Dorabji Tata Trust and Sir Ratan Tata Trust had unanimously resolved and recommended the extension of my next term for a period of five years, which was recorded and recommended by the Tata Sons Nomination and Remuneration Committee and the Board,” Chandrasekaran wrote in his letter.
He said the proposal was then placed before the Tata Sons board on February 24, 2026. However, it was not approved after one board member opposed it.
“Subsequently, the resolution was tabled in the Tata Sons Board on Feb 24, 2026. However, the proposal was not carried through because one of the Board members did not support it, and in the absence of unanimous support, I chose to defer the decision,” he said.
Chandrasekaran said six months had passed since the board meeting, but no decision had been reached.
He said it was important to have a leader appointed beyond February 2027, both to guide the group going forward and to provide clarity to its employees, investors, partners, and other stakeholders.