Vice-Chairman Vijay Singh Steps Down from Tata Sons Board
In an unexpected turn of events, Vijay Singh, vice-chairman of Tata Trusts, has resigned from the Tata Sons board just one day prior to a planned meeting of the holding company's directors.
This decision occurs as Tata Sons approaches a Reserve Bank of India (RBI) deadline requiring the company to proceed with its initial public offering.
Through its primary entities, the Sir Dorabji Tata Trust and the Sir Ratan Tata Trust, Tata Trusts holds approximately 52 percent ownership in Tata Sons, which serves as the parent organization of the $165-billion Tata Group encompassing sectors from aviation to automotive industries.
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Singh had been representing Tata Trusts as a nominee director on the Tata Sons board and will remain in his position as a Tata Trusts trustee.
His departure is surprising since Tata Trusts' nominee directors are exempt from mandatory retirement ages, unlike other board members at Tata Sons. Presently, executive directors must retire at 65, non-executive directors at 70, and independent directors at 75.
TV Narendran, who serves as global CEO and managing director of Tata Steel, is anticipated to join the Tata Sons board as a group representative.
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The 60-year-old executive recently held discussions with Tata Sons chairman N. Chandrasekaran at Bombay House regarding this potential appointment.
This addition would enhance Tata Steel's presence within the group's governing body, alongside Noel Tata, who chairs Tata Trusts and currently sits on the Tata Sons board while also holding the position of vice-chairman at Tata Steel.
Narendran's potential appointment coincides with significant changes in the Tata Sons board composition.
Ralf Speth, the former Jaguar Land Rover CEO, departed this month after reaching 70, concluding his tenure that began in October 2016 during the board restructuring that followed Cyrus Mistry's dismissal.
Independent director Leo Puri submitted his resignation in April, and seasoned industrialist Ajay Piramal left his position in August upon reaching the mandatory retirement age of 70. These departures have created three open positions on the board.
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The Tata Sons board consists of various categories of directors including executive, non-executive, and independent members, all subject to specific retirement requirements - executives must step down at 65, while non-executives face retirement at 70.