A motion to elect separate chairs for Tata Sons and its parent Tata Trusts was approved by a majority of the company's shareholders. However, the single-largest stakeholder of Tata Sons, Shapoorji Pallonji (SP) Group, chose not to participate in voting at the annual general meeting (AGM) on Tuesday. Tata Sons' 18.4% shareholder SP declined to comment.
Although Ratan Tata was the last person to hold both positions at Tata Sons and Tata Trusts, the shareholders' approval on Tuesday and the ensuing change in the company's articles of association (AOA) will make it legally binding. The chairman's positions at Tata Sons and Tata Trusts have been separate since 2013; Ratan Tata was the last person to hold both positions.
Ratan Tata, chairman of Tata Trusts, is the last individual to hold both the chairmanships of Tata Sons and Tata Trusts; however, the roles have remained distinct ever since he stepped down as chairman of Tata Sons in December 2012 and was succeeded by Cyrus Mistry.
N Chandrasekaran currently serves as the chairman of Tata Sons. He was appointed in February 2017 for a five-year term then reappointed in February of this year for an additional five years.
According to the altered articles of association, a candidate for the position of chairman of Tata Sons would require the support of all the company's directors, and a selection committee would be established to suggest both the appointment of a new chairman and the removal of the current one.
Along with Anita George's nomination as an independent director, the shareholders at the AGM also accepted the reappointments of Ajay Piramal and Venu Srinvasan as Tata Sons directors.