Amidst the ongoing nternal feud over the reappointment of Tata Sons chairman, Noel Tata is set to step down from the boards of six Tata Group companies on November 12.
However, it must be noted that the exit does not stem from the ongoing controversy. Noel Tata, who chairs Tata Trusts, will turn 70 on March 12. His planned exit from the six boards is in line with the group’s retirement policy for directors reaching that age.
His exit from the boards of six Tata Group companies will mark a shift in his responsibilities across the conglomerate. However, he will continue as a director on the Tata Sons board, retaining his role at the group’s holding company.
Noel Tata currently holds senior positions at Trent, Voltas, Tata Investment Corporation, Tata International, Tata Steel and Titan Company. His departure will affect board-level leadership across retail, consumer durables, investments, steel and jewellery, with the respective companies to determine succession arrangements.
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Noel Tata has played a significant role in Trent’s growth, a company that operates retail brands such as Westside and Zudio, with the latter becoming an important driver of India’s fashion market.
Tata Sons is the principal holding company of the Tata Group, with businesses spanning automobiles, information technology, steel, retail, consumer products and aviation. Tata Trusts collectively hold around 66% of Tata Sons, making them the holding company’s principal stakeholder.
As chairman of Tata Trusts, Noel Tata’s continued representation on the Tata Sons board is significant to the relationship between the trusts and the group’s operating businesses. His retirement will reduce his direct boardroom responsibilities at several operating companies while preserving his position at the holding company.
The retirement comes at a time when Chandrasekaran’s reappointment as chairman of the Tata Group is being debated.
An official familiar with the matter said Noel’s move is intended as a signal to Chandrasekaran that he is adhering to the norms, while Chandrasekaran’s five-year term would surpass the retirement age for executives.
As per the established governance framework, executive directors ordinarily retire at 65. Chandrasekaran, born on June 2, 1963, is currently 63 and will turn 65 on June 2, 2028.
His proposed tenure would extend until February 2032, which would take him beyond the prescribed executive retirement age. Continuing beyond the designated age in a position would require an exceptional relaxation under the applicable governance policy.
The distinction is important because Noel Tata’s retirement at 70 concerns non-executive directorships, while Chandrasekaran’s proposed continuation involves an executive position.