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Tata Sons preparing for EGM, possibility of confirmation on N Chandrasekaran’s third term
Tata Sons, the holding company of Tata Group, is preparing to convene an Extraordinary General Meeting (EGM) next week, in which the board may give formal approval to the proposal to reappoint N Chandrasekaran for a third term as executive chairman. This decision is being taken about a year before the end of his second term, which is considered a different move from the company’s normal retirement policy.
According to the policy of Tata Sons, after the age of 65, the chairman has to move to a non-executive role, but to keep Chandrasekaran in the executive role, special relaxation is being given to this rule. Earlier in 2016 too, such an exception was made when Ratan Tata took over as chairman in place of Cyrus Mistry. Chandrasekaran will turn 63 in June.
Tata Trusts have received approval
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In October last year itself, Tata Trusts, the largest shareholder of Tata Group, had unanimously approved the proposal to reappoint Chandrasekaran in the executive role. This indicates that the emphasis is on keeping the group’s top leadership structure stable.
TCS’s AI roadmap in front of the board
According to sources, the top management of Tata Consultancy Services (TCS) will give a presentation on Artificial Intelligence based strategy in front of the board next week. This step is being taken at a time when AI-driven technology is advancing rapidly globally and pressure on traditional IT service models is increasing. Investor concern over tech stocks has also increased after the recent market selloff.
The board will also be given major operational and strategic updates related to Tata Electronics and Air India in the meeting. However, Tata Sons has not made any official comment on this entire incident. Officials associated with the company say Chandrasekaran’s possible reappointment will send a message to the market and investors that the group wants to maintain continuity in leadership, especially at a time when key sectors like technology and aviation are undergoing rapid change.
Will there be movement on TCS stock?
Even though the EGM of Tata Sons is next week, the re-appointment of N Chandrasekaran to the post of executive chairman is considered almost certain. Here, after this news, action can be seen in TCS stock.
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