Noel Tata cannot hold both the Chairman position at Tata Trusts and Tata Sons simultaneously. This restriction began after Cyrus Mistry’s removal from the Tata Sons board in 2017, which led to concerns about governance and the relationship between Tata Sons and its key shareholders, the Sir Dorabji Tata Trust and Sir Ratan Tata Trust.
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By 2022, Ratan Tata, then Chairman of Tata Trusts, established a governance framework that ensured a clear division between ownership and operations within Tata Sons. He also implemented measures to involve the trusts’ trustees in selecting the Chairman of Tata Sons’ board.
In the FY22 Annual General Meeting, Ratan Tata proposed an amendment to Article 118, stipulating that anyone serving as Chairman of either Tata Trust could not concurrently hold the Chairman position at Tata Sons. This amendment emphasized the importance of governance and ensured a selection committee was established to oversee the Chairman’s appointment, composed of members nominated by both trusts.
The selection committee will consist of three members, including one from the board of Tata Sons and an independent member chosen by the board. Currently, N Chandrasekaran serves as the Chairman of Tata Sons, having been reappointed for a five-year term ending February 20, 2027.
Notably, Tata Sons eliminated the age limit for the Chairman in 2017 to facilitate Ratan Tata’s return as interim Chairman after Mistry’s exit. Previously, an age limit of 75 was instituted to allow Ratan Tata to stay in his position until he stepped down in 2012.
