Tata Sons executive chairman N Chandrasekaran requested that the board postpone deliberations on extending his tenure for a third term after differences surfaced during the Tata Sons board meeting on Tuesday, according to people aware of the developments.According to an ET report, at the meeting, Tata Trusts chairman Noel Tata brought up concerns about losses in some of the Tata Group’s newer ventures, prompting an in-depth discussion. Other directors expressed support for Chandrasekaran’s continuation, noting that the losses were linked to greenfield projects that typically require time before delivering returns.Noel Tata serves on the Tata Sons board as a nominee of Tata Trusts, alongside Venu Srinivasan. Chandrasekaran’s present term still has about a year remaining, running until February 2027. The meeting was attended by all directors, including Noel Tata and vice chairman Srinivasan, the ET report said.Any extension of Chandrasekaran’s tenure would need approval through a special resolution and would require a waiver from Tata Sons’ retirement norms, which set an age limit of 65 for non-executive positions. Chandrasekaran will turn 63 in June.Since assuming the role of executive chairman in 2017, Chandrasekaran has guided the group through a phase marked by restructuring, strengthening of the balance sheet and tighter discipline in capital deployment.Tata Trusts chairman Noel Tata is believed to have outlined four conditions that he wants addressed before any extension of Chandrasekaran’s tenure is considered. The first condition is that Tata Sons should remain unlisted, in line with Reserve Bank of India requirements applicable to upper-layer non-banking financial entities, a category that includes large conglomerates such as Tata Sons.The second requirement is that the company should operate without debt. The third stipulation is aimed at preventing excessive capital expenditure on high-risk ventures that could deplete the company’s financial reserves. The fourth condition relates to limiting losses arising from acquisitions such as Air India and BigBasket.Anita George, who heads the board’s reappointment committee, supported the proposal to extend Chandrasekaran’s term, noting that losses in greenfield ventures are anticipated and have been accounted for.After the discussion, some directors proposed putting the issue to a vote, but Chandrasekaran suggested postponing the decision, stating that the Tata Group functions best when Tata Sons and Tata Trusts remain aligned in their decisions.
