More than two weeks after Natarajan Chandrasekaran announced he would not seek another term as Tata Group chairman, the search for his successor is still stalled due to a regulatory roadblock involving a key shareholder.
The search process is being held up because Sir Ratan Tata Trust — one of the 13 charities that make up the majority shareholder in Tata Group’s holding company — remains barred from conducting internal meetings under restrictions tied to an ongoing probe, according to people familiar with the matter. As a result, SRTT is unable to nominate its representative to the five-member joint search panel, the people said.
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To move the process forward, Tata Trusts, which collectively hold 66% of Tata Sons Pvt., has asked the Maharashtra Charity Commissioner to permit SRTT to appoint its representative to the panel announced by Sir Dorabji Tata Trust, said the people, asking not to be identified discussing internal matters.
The limbo deepens the leadership uncertainty set off by Chandrasekaran’s shock announcement on Aug. 12 that he would step down when his term ends in February, reflecting how unprepared India’s oldest conglomerate was for managing succession amid the power struggle between the outgoing chairman and Noel Tata, who heads the Trusts.
