The Hindu : Business : Ratan Tata's term extended till 2012

Online edition of India's National Newspaper
Tuesday, Jun 28, 2005

Business

Business

Ratan Tata's term extended till 2012

Special Correspondent

NEW DELHI: With the succession battle at Reliance Industries Limited having just ended, the fate of succession in the giant Tata Group also seems to have been decided for the time being. At a recent board meeting, the holding company, Tata Sons, has decided to raise the retirement age of non-executive directors from 70 to 75 years. The group Chairman, Ratan Tata, who will turn 68 in December, is thus expected to remain in this position for the next seven years, ending the speculation over his successor in the group.

Sources in the Tata group in Mumbai said the option to continue beyond the age of 70 would remain with Mr. Tata according to the guidelines now approved by the board of the Rs. 75,000-crore industrial house.

Mr. Tata had retired as Executive Chief in 2002 and has been functioning as non-executive Chairman of the Tata Group. Under the new guidelines, he can remain in this position till 2012, instead of retiring in 2007. With this decision taken by the board, the contentious issues of succession have been postponed till 2012 unless Mr. Tata decides to retire at an earlier date.

The board of Tata Sons decided to create Nomination Committees for the selection of new directors based on certain criteria and specification of tenure for independent directors. The retirement age has been maintained at 65 years for executive/whole-time directors.

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