In a release, the Sir Dorabji Tata Trust (SDTT), which along with other Tata Trusts is the principal shareholder of Tata Sons, said its trustees have passed a resolution to begin the process of setting up a selection committee in accordance with the articles of association of Tata Sons. The committee will recommend a candidate for appointment as the new chairman of the Tata Sons board.
The development comes a day after Mr Chandrasekaran informed Tata Sons that he would not offer himself for another term, bringing an end to months of uncertainty over his continuation at the helm of the Tata group's holding company.
The SDTT said it respected Mr Chandrasekaran's decision and expressed its appreciation for his contribution to Tata Sons and the wider Tata group.
The Trust said Mr Chandrasekaran had provided leadership during a period of substantial change, growth and transformation across the group.
"The Trustees of the Sir Dorabji Tata Trust have passed a resolution to initiate the setting up of a selection committee as soon as possible in accordance with the articles of association of tata sons, for the purpose of recommending a person for appointment as the new chairman of the Board of Directors," the Trust said.
The Trust also said it would support Tata Sons in ensuring a smooth and orderly transfer of leadership, with the succession process guided by the long-term interests and values of the group.
Tata Trusts collectively hold about 66% of Tata Sons, making them the principal shareholder of the holding company. The decision to formally begin the selection process, therefore, marks a significant step towards resolving the group's leadership succession.
Mr Chandrasekaran, who has spent about four decades with the Tata group, became chairman of Tata Sons in January 2017 after serving as chief executive officer and managing director of Tata Consultancy Services (TCS).
He joined TCS as an intern in 1987 and rose through the organisation before becoming one of the group's most senior executives. Under his chairmanship, Tata group companies have been involved in a period of significant expansion and strategic transformation.
His decision not to seek another term followed months of uncertainty over his proposed reappointment.
Mr Chandrasekaran said in his statement that the Sir Dorabji Tata Trust and Sir Ratan Tata Trust had unanimously recommended extending his tenure for another five years. The recommendation was subsequently recorded and endorsed by the Tata Sons' nomination and remuneration committee and the board.
However, when the proposal was placed before the Tata Sons board on 24 February 2026, it did not receive unanimous support after one director opposed it.
Mr Chandrasekaran said the decision had remained unresolved for six months and that Tata Sons was simultaneously pursuing several strategic initiatives that were at critical stages.
He said clarity over who would lead the group beyond February 2027 was important not only for Tata Sons but also for its employees, investors, business partners and other stakeholders.
Against this backdrop, Mr Chandrasekaran informed the Tata Sons board that he would not offer himself for reappointment when his current term expires on 20 February 2027. He also asked the board to decide on succession at an early stage to facilitate an orderly transition.
The decision is particularly significant because Mr Chandrasekaran's continuation as chairman is linked to his reappointment as a director of Tata Sons.
Shareholders of Tata Sons are scheduled to consider his reappointment as a director at the company's 18th annual general meeting (AGM) on 18 August 2026, according to the company's AGM notice. His decision not to seek another term changes the context of that process.
The immediate focus will now shift to the selection of his successor.
The SDTT's resolution to form a selection committee is the first formal step announced by the Trust towards choosing the next chairman. The committee will recommend a candidate in accordance with Tata Sons' articles of association.
The Trust did not disclose any names under consideration for the position or provide a timeline for completing the selection process, other than stating that it would be initiated as soon as possible.
Mr Chandrasekaran's exit from the chairmanship will mark a major leadership transition for Tata Sons, the principal holding company of the Tata group, whose businesses span sectors including information technology, automobiles, aviation, consumer products and other industries.
The group includes major companies such as TCS, Tata Motors and Air India.
The Tata Trusts' emphasis on a 'smooth, timely and orderly transition' indicates that the succession process will now be a key priority for Tata Sons and its principal shareholders in the months leading up to the end of Mr Chandrasekaran's current tenure.
For now, Mr Chandrasekaran will continue as chairman of Tata Sons and complete his existing term which expires on 20 February 2027.
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