Tata Trust has approved the third term of Tata Sons Chairman N Chandrasekaran. As a result, Chandrasekaran will serve as Tata Sons chairman for three consecutive terms. When his second term as Tata Sons chairman ends, he will turn 65 years old. Despite this, the approval for a third term has been given by breaking the rules. The entire matter has come to light from a report by The Economic Times.
N Chandrasekaran first joined the Tata Sons board in October 2016. He resumed the position of Tata Sons chairman in January 2017. His second term as chairman was approved in February 2022. The second term will end in 2027, and the third term will end in 2032.
According to the Tata Group's retirement policy, executive officials retire from their responsibilities at the age of 65. However, they can remain in non-executive positions until the age of 70. But in Chandrasekaran's case, Tata Trust has broken this rule. Because Chandrasekaran will turn 65 in 2027. But even after that, he will remain in an executive position.
The indication of why the rules were broken to approve Chandrasekaran for a third term has been received through a source from the Tata Trust. The source has stated that this decision was taken for 'Continuity of functioning'. Breaking conventional rules, Chandrasekaran has been approved for a third term.
Tata Trust members do not want leadership changes in multiple important projects related to semiconductors, electric vehicle batteries, and Air India. It has been learned that they made this decision for that reason.
