Mumbai: Tata Sons’ Annual General Meeting (AGM) on Tuesday was called off due to a lack of quorum, making it the first time in the holding company’s history that an AGM has been deferred, reports said.
A report by NDTV Profit, citing sources, said the development was linked to a restriction involving the Sir Ratan Tata Trust (SRTT).
The deferred meeting comes at a time when Tata Sons is preparing for a leadership transition following Chairman N. Chandrasekaran’s decision not to seek another term. His move has triggered the process of identifying a successor, with the Sir Dorabji Tata Trust commencing the search exercise.
The succession process is expected to be closely watched given the influence of Tata Trusts — which collectively hold around 66 per cent of Tata Sons.
As Chairman of Tata Trusts, Noel Tata is emerging as a key figure in the selection of the next Tata Sons Chairman, the report said.
However, the eventual appointment will be made through a formal committee mechanism laid out in the Articles of Association of Tata Sons, it added.
The leadership transition follows discussions at a Tata Sons board meeting in May where Chandrasekaran outlined the performance, growth prospects and capital requirements of several newer group businesses, including the electronics and aviation segments.
During those deliberations, Noel Tata is understood to have expressed concerns regarding losses at certain businesses.
Noel Tata’s role in the succession process comes as he approaches his own transition across several Tata Group companies.
The report also highlighted that he is scheduled to retire from the boards of six Tata firms in November after attaining the age of 70, in accordance with retirement norms for non-executive directors.
Earlier in August, Chandrasekaran — who has completed four decades with the Tata Group — described his tenure at the helm of the group as a great honour and a profound responsibility after resigning and deciding not to seek reappointment as Chairman of Tata Sons when his current term ends on February 20, 2027.
Chandrasekaran had communicated his decision to the Tata Sons board ahead of the company’s AGM. According to him, six months had passed since that board meeting and no resolution had been reached.
(IANS)
