After the sudden resignation of Tata Sons Chairman N Chandrasekaran, the search for a new successor has started. Sir Dorabji Tata Trust has started the process of constituting a 5-member selection committee by passing a resolution today on 13th August. The name of Tata Steel Managing Director TV Narendran is at the forefront in the race for this post. Narendran has been associated with Tata Group since 1988. His entire career has been in Tata Steel. Time till February 2027 to choose Chairman: Chandrasekaran may have resigned but he will remain on the post of Chairman of Tata Sons till February 2027. That means he will complete his tenure. Because of this, Tata Sons has about 6 months to choose a new chief and plan for his smooth transition. A 5-member committee will decide the new chairman. The successor in Tata Group is not selected directly by any promoter family. According to the rules of Tata Sons, a special committee of 5 members is formed for this: Three reasons why Narendran’s name came into discussion… Legal hurdle in the selection process: There is an administrative and legal hurdle in the process of selection of the new chairman. Due to a directive from the Maharashtra Charity Commissioner, Sir Ratan Tata Trust (SRTT) is not able to hold the meeting of its trustees at present. Due to this, the process of nominating three members from the Trust in the committee may be affected, which has become a new complication in the selection of Chandrasekaran’s successor. Why can’t Noel Tata become interim chairman? When Cyrus Mistry was removed from the post in 2016, Ratan Tata took over the responsibility of interim chairman at the age of 78. After this Chandrasekaran was made the chairman. However, Noel Tata cannot take that path this time. In the year 2022, the rules of Tata Sons were amended, under which the Chairman of Tata Trusts cannot simultaneously become the Chairman of Tata Sons. Ratan Tata was the last person to hold both the posts simultaneously. What will be the role of Noel Tata? Noel Tata is turning 70 in November this year. As per Tata Group policy, the retirement age for non-executive directors is fixed at 70 years. Under this, he will retire from the boards of other companies of the group. However, he will continue to be a director on the board of Tata Sons as he is the nominee of the trust. Retirement age limit is not applicable on trust nominee. Knowledge Part: Know what is the structure of Tata Sons and Tata Trusts ————————————————- Also read this business related news… Muthoot Fincorp will bring an IPO of Rs 3 thousand crore: DRHP deposited with SEBI, the entire money will be raised by issuing new shares. Muthoot Fincorp is bringing an IPO of ₹ 3,000 crore. For this the company has filed DRHP with SEBI. The funds raised from the IPO will be used to meet future capital requirements, provide further loans and expand the business. Read the full news…
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