Tata Sons adjourned its annual general meeting scheduled for August 18 after the required quorum was not met, according to an NDTV Profit report. The development comes days after N Chandrasekaran announced that he would not seek an extension of his term as chairman of Tata Sons, adding to the focus on the succession process at the holding company of the Tata Group.

The adjournment comes as Tata Trusts prepares to play a central role in selecting Chandrasekaran’s successor. Tata Trusts controls around 66 per cent of Tata Sons and last week constituted a committee to recommend a new chairman. Noel Tata, who chairs Tata Trusts, is among the names being discussed for the position, although the appointment is expected to follow a formal committee process prescribed under the Articles of Association of Tata Sons.

Noel Tata’s potential candidacy comes against the backdrop of his upcoming retirement from the boards of six Tata companies after he turns 70 in November. The companies are Trent, Tata Steel, Titan, Voltas, Tata Investment Corporation and Tata International. However, his retirement from those boards would not automatically require him to leave the Tata Sons board, as Tata Trusts nominees are exempt from the retirement-age restriction applicable to other non-executive directors.

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The succession question has gained importance following recent discussions at the Tata Sons board level. At a board meeting in May, Chandrasekaran presented plans concerning the performance, growth prospects and capital requirements of various businesses, including the group’s interests in electronics and aviation. The discussions also covered individual businesses, with Noel Tata raising concerns about the performance of some operations, including Air India and BigBasket, particularly in relation to their losses.

Tata Electronics, meanwhile, received a more favourable assessment during the discussions, according to the report. The contrasting views on the performance of different businesses come as the group continues to invest heavily in sectors including electronics and aviation while working to strengthen the performance of several major operations.

The postponed AGM adds another development to the leadership transition at Tata Sons. While the lack of quorum led to the scheduled annual meeting being adjourned, the more significant issue for the group remains the formal process of identifying Chandrasekaran’s successor. With Tata Trusts holding a controlling stake and Noel Tata among the potential contenders, attention is now focused on how the committee will conduct the succession process and when a final decision will be announced.

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