Mumbai: Tata Sons' board on Thursday backed a fresh five-year term for Chairman N Chandrasekaran and cleared the company's long-pending listing plan, according to a report. 

NDTV Profit reported -- citing sources -- that Tata Trusts Chairman Noel Tata opposed the proposals but was outvoted by other board members.

“Sources reveal that Noel Tata, who holds veto rights on the board on behalf of Tata Trusts, disagreed with both proposals and has invoked his veto power to block the resolutions,” according to the report.

The decision comes weeks after the Reserve Bank of India directed Tata Sons to proceed with a listing.

In addition, the RBI had classified Tata Sons as an upper-layer non-banking financial company, requiring it to list within three years in 2022.

The board's decision also settles months of uncertainty over the company's leadership. 

Chandrasekaran -- who has led Tata Sons since February 2017 -- was reappointed for a second five-year term in 2022, scheduled to end on February 20, 2027. 

Although Tata Trusts had backed a third term in 2025, discussions stalled earlier this year amid concerns raised by Noel Tata over the performance and capital allocation of businesses including Air India and Tata Digital.

Chandrasekaran had said will not seek another term

Earlier in August, Chandrasekaran had indicated that he would not seek another term and informed the board of his decision. 

In a statement, Chandrasekaran has stated that I have completed 40 years of professional life at the Tata Group.

“I am grateful for the immensely satisfying opportunity to contribute to this venerable institution. Leading Tata Sons over the past decade has been a great honour and a profound responsibility,” he added.

His announcement triggered a formal succession exercise by the Tata Trusts and intensified speculation over the future leadership of the conglomerate.

The latest board decision also follows an unprecedented disruption at Tata Sons' annual general meeting in August, when the meeting was deferred due to a lack of quorum, the first such instance in the company's history. 

The postponement was linked to restrictions involving the Sir Ratan Tata Trust and came against the backdrop of growing debate over succession planning and the company's future structure.