N Chandrasekaran's real vote test: Tata Sons AGM, not boardroom

MUMBAI: Even as Tata Sons' board has reappointed N Chandrasekaran for a third five-year term, his position hinges on another vote for his reappointment as a director. The chairmanship itself does not require shareholder approval. But director reappointment does, through an annual general meeting where majority owners will hold sway.Tata Sons has to decide on a new AGM date as the Aug meeting was adjourned for want of quorum. The company has an extension from the Registrar of Companies to hold the AGM by Dec this year.When it does, a circular resolution will go to all six directors, who will have seven days to respond with a 'yes' or 'no'. If Chandrasekaran succeeds in winning reappointment as director, the chairmanship extends to Feb 21, 2032. Failure to do so, and his term at Tata Sons ends immediately.However, the quorum problem that sank the Aug meeting has not gone away.