‘Take issue of Tata Sons re-organisation plan in board meeting’:Noel Tata writes in fresh letters to Tata Sons board

In fresh letters to Tata Group’s holding company, Tata Sons, Tata Trusts Chairman, Noel Tata has requested the board to take up the issue of re-organisation plan at upcoming meeting on 26 November, 2026, reported ‘The Economic Times.’ Tata Trusts, the 66% majority owner of Tata Sons, had earlier proposed a reorganisation plan to merge two group companies into the holding firm. The plan aimed to change the company’s financial structure so it would no longer fall under RBI rules requiring a public stock market listing. Tata Trusts proposed TESS, TCE merger Tata Trusts had submitted a strategic plan to the board of Tata Sons Private Limited (TSPL). Under this plan, two operating companies will be merged directly into Tata Sons. These two companies are Tata Electronics Systems Solutions Private Limited (TESS) and Tata Consulting Engineers (TCE). Merger to change financial structure of Tata Sons The main goal of this merger is to change the financial nature of Tata Sons. At present, Tata Sons functions as a holding company. Because of this, it is classified by regulators as a non-banking financial company (NBFC) and a core investment company (CIC). By bringing operating businesses like TESS and TCE directly into Tata Sons, the firm will generate direct operating revenue. The proposed structure will turn Tata Sons back into an operating company alongside its role as a holding company. Tata Sons ceases to exist as NBFC upon merger Tata Trusts had stated that after this merger, the combined company will no longer meet the regulatory criteria for an NBFC or a CIC. Once it ceases to be a CIC, Tata Sons will surrender its certificate of registration to the Reserve Bank of India (RBI). Internal Leadership Conflict: There is a disagreement between Tata Trusts and the Tata Sons board. This issue is tied to the leadership of Tata Sons Chairman N Chandrasekaran. Chandrasekaran has led Tata Sons since 2017. Apparently, in early 2026, Noel Tata sought assurances from him on key matters, including keeping Tata Sons private. Because there was no clear commitment on the listing issue, so reportedly his reappointment became complicated. In August, Chandrasekaran announced he would step down when his term would end in February 2027. The Trusts accepted this and asked Tata Sons to search for a successor. However, on September 17, the Tata Sons board voted to give Chandrasekaran another five-year term. Out of five directors, four voted in favor, while Noel Tata voted against it. Tata Trusts later argued that this board vote was invalid under the articles of association because it lacked support from nominee directors of the Trusts. The Tata Sons board also decided to move forward with steps to comply with RBI listing rules. This decision deepened the divide between the majority shareholder and the board. The restructuring proposal goes beyond a basic corporate cleanup. It provides a legal and regulatory route for Tata Trusts to preserve the unlisted status of Tata Sons. By taking this route, Tata Trusts aims to protect the existing governance balance. If Tata Sons is listed on the stock market, it would change the relationship between public shareholders, the board, and the philanthropic trusts that own 66 percent of the company.