Tata Sons Chairman N Chandrasekaran Resigns, will Continue His Term Till February

Tata Sons Chairman N Chandrasekaran has resigned from his position. However, he will continue his role until the end of his current term in February, as reported by Reuters.

The development occured during the disagreements seen between Tata Sons and Tata Trusts on his reappointment. The resignation also came at a time when the Tata Group is facing a number of difficulties across its companies.

Tata Sons is the holding company of the Tata group with $400-billion and it comprises over 30 important Tata companies such as Tata Consultancy Services (TCS), Tata Motors and Air India. The philanthropic arm of the group Tata Trusts has a 66% stake in Tata Sons.

The resignation comes amid a dispute on the length of Chandrasekaran’s second term.

An earlier report by Reuters said that Tata had delayed a decision on his extension to the role last February when Noel Tata, chairman of Tata Trusts, objected.

The two sides were said to have had differences regarding multiple issues, such as those related to Chandrasekaran’s reappointment. One of the issues was the commitment that Tata Sons would never be listed. Chandrasekaran was allegedly not willing to make such a commitment.

There were also issues with the composition and representation of the Tata Sons board.

Meanwhile, the news of Chandrasekaran’s resignation had a serious concern on the share market. As the new of resignation came out, it led to the fall of some of the shares of Tata Group companies on Wednesday.

TCS, India’s biggest IT services exporter faced a loss about 4.1%. Tata Motors, which is the owner of Jaguar Land Rover, also dipped around 2.8%.

While Chandrasekaran will leave a void to be filled, he will also be a significant figure for Tata Sons’ leadership development as he is expected to stay till the end of his tenure in February.