Chandrasekaran decides to step down in 2027, then gets reappointed: What changed at Tata Sons | Timeline

A wave of disagreement erupted at the Tata Sons after the board on Thursday approved a fresh five-year term for N Chandrasekaran as executive chairman, reversing his decision last month not to seek reappointment.

In a statement on Thursday, the board said it received a resolution from Tata Trusts backing the re-appointment of N Chandrasekaran as executive chairman for another five years.

“The Board received from Tata Trusts their unanimous resolution dated July 28, 2025 expressing their appreciation of the Chairman of Tata Sons, Mr. N. Chandrasekaran (Chandra) for his stewardship of the Group from 2017 onwards. In recognition of these efforts the Tata Trusts resolved that he be re-appointed as Executive Chairman for a further term of five years upon the expiry of his current term,” the statement read.

But why was Chandrasekaran appointed even after he earlier agreed to step down: A timeline of events

It all began in 2017, when Chandrasekaran was first appointed chairman of Tata Sons. He continued his tenure and began a second five-year term in 2022, which was supposed to end in February 2027.

In July 2025: Tata Trusts agreed to recommend a fresh five-year term for Chandrasekaran.

On 24 February, 2026: The recommendation was subsequently taken up by the Tata Sons board. However, the proposal was not carried through after Noel Tata sought a clear roadmap for the performance of some of the new businesses launched under Chandrasekaran’s watch, including e-commerce, aviation and semiconductors, according to a person familiar with the matter, HT had earlier reported.

On August 12, 2026: Chandrasekaran said he had decided to step down as chairman of Tata Sons when his current term ends, citing lack of unanimous support for his reappointment from the board of the holding company of the salt-to-software conglomerate.

In his resignation letter, Chandrasekaran said his decision not to seek another term was linked to the reappointment proposal not receiving unanimous support from the board.

“My current tenure as the Chairman of Tata Sons comes to an end on Feb 20, 2027. 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.

“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.

August 18, 2026: A Tata Sons AGM, which was to vote on Chandra’s reappointment as director, adjourned over a lack of quorum.

September 3, 2026: Chandrasekaran was “unanimously” asked to reconsider his decision, in recognition of his contributions and the larger interests of the Tata Group, at the Nomination Remuneration Committee (NRC) meeting of the board.

September 11, 2026: The Reserve Bank of India rejected Tata Sons’ request to exit its non-banking financial company (NBFC) framework, forcing the holding firm to move forward with a listing. The company wanted to exit the NBFC framework and remain privately held.

With Chandrasekaran's appointment, the company set in motion the process to list the group's holding company.

Noel remains against going public. He told the Tata Sons board on Thursday (September 17) that he would block any decision to list the country’s largest company by revenue and instead suggested the group’s holding company ask the Reserve Bank of India (RBI) for at least three years to meet the requirements if a listing is eventually necessary.

Noel’s statement challenges Tata Sons’ claim that its board had decided to “start steps to follow the applicable RBI guidelines.”

“If I am forced to vote, then I would have no option but to veto any such decision to list,” Noel told the board, according to a statement later released by Tata Trusts. “A listing will destroy its character and strike at the heart of this principle,” Noel said.

Noel said the Tata Sons board, led by the late Ratan Tata, had “unanimously” agreed that the company would stay “unlisted.”

September 17, 2026: Tata Sons Board approves a five-year extension for Chandrasekaran, a proposal that Tata Trusts chairman Noel Tata voted against.

Noel Tata calls reappointment ‘illegal’

After Tata Sons approved a fresh five-year term for Chandrasekaran as executive chairman, Tata Trusts issued a statement saying it maintains that the resolution to reappoint Chandrasekaran “is illegal”.

Tata Trusts chairman Noel Tata reiterated the same position during the Tata Sons board meeting, according to the statement. While Noel voted against Chandrasekaran’s reappointment, the resolution was approved by a majority of the Tata Sons board.

Process of appointment of Chairman

Tata Trusts said the resolution was a “legal nullity” in view of the provisions of the Articles of Association of Tata Sons. According to the statement, the process for appointing a chairman requires a majority of the Trusts’ nominee directors to vote in favour of the resolution. It said the same process applies to both the first appointment of a chairman and the reappointment of an existing chairman.

The statement further said the board cannot lawfully hold a meeting or pass a resolution on the chairman’s appointment or reappointment unless both Trust nominee directors are present.

It also said such a resolution cannot be validly passed unless both nominee directors vote in favour. Since Noel Tata, one of the Trust nominee directors, voted against the proposal, Tata Trusts said the resolution was rendered legally void and “without any basis”.