New Delhi, Aug 12 (IANS) Tata Sons chairman N. Chandrasekaran has discussed with close associates the possibility of stepping down before the conglomerate’s annual general meeting (AGM) as uncertainty surrounds his reappointment as a director and disagreements persist within the Tata group, according to multiple reports.
Reports — citing sources — said that Chandrasekaran is weighing the option of resigning rather than allowing his future as chairman to be decided at what could become a contentious shareholder vote.
While his current term as chairman runs until February 2027, his continuation in the role is contingent on being reappointed as a director of Tata Sons.
Shareholders are scheduled to vote on Chandrasekaran’s reappointment as a director at the August 18 AGM, according to the company’s notice.
The uncertainty follows differences between Chandrasekaran and Noel Tata, chairman of Tata Trusts which is the principal shareholder in Tata Sons.
The Tata Sons board in February deferred a decision on Chandrasekaran’s reappointment as chairman after Noel Tata raised concerns regarding the performance of some of the group’s newer businesses, according to the reports.
They further highlighted that Noel Tata opposed the reappointment move, prompting the board to postpone a decision on Chandrasekaran’s continuation as chairman.
Chandrasekaran joined the Tata group in 1987 and became chief executive officer of Tata Consultancy Services in 2009 before taking over as chairman of Tata Sons in 2017.
However, the company has not yet issued any statement on these reports.
Following this, stocks of several Tata Group-backed firms witnessed selling pressure, declining by up to 1 per cent on Wednesday in morning trade.
Tata Consumer Products shares declined more than 1 per cent to 1,066 apiece on the NSE, while Tata Consultancy Services (TCS) also declined nearly 1 per cent to Rs 2,424.50 on the exchange.
Similarly, Titan Company’s shares were trading 1.03 per cent lower at 5,075.10 and Tata Power Company was trading at Rs 376.60, down 0.9 per cent.
–IANS
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