N Chandrasekaran has stepped down as chairman of Tata Sons on Wednesday, days ahead of the company’s annual general meeting (AGM), which is scheduled for August 18. His current term will run until February 2027, following which he will not seek reappointment.His nine-year tenure transformed the scale and breadth of one of India’s most influential conglomerates, but ended with a standoff with Tata Trusts chairman Noel Tata over his reappointment.“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,” Chandrasekaran said in a statement.According to him, one of the board members (possibly Noel Tata) did not favour extending his term beyond 2027, and he made the decision to resign in the absence of unanimous approval. “Sir Dorabji Tata Trust and Sir Ratan Tata Trust had unanimously resolved and recommended the extension of my next term for a period of five years,” Chandrasekaran added, reflecting on the conclusion of his term in February 2027.He said the proposal was presented to the Tata Sons board on February 24, 2026. However, opposition from one board member prevented it from being passed. While he did not name the board member, Noel Tata, who took over as chairman of Tata Trusts in 2024 following the death of Ratan Tata, had wanted certain assurances from Chandra before giving him another term.Noel sought greater clarity on the group’s five-year strategic roadmap, the handling of losses at newer businesses and a way to provide an exit to the Shapoorji Pallonji Group without taking Tata Sons public, according to people familiar with the matter. He also sought Chandra’s position on the long-debated question of listing Tata Sons.Chandra was reportedly unwilling to commit that Tata Sons would never be listed, making the potential IPO one of the key fault lines between the operating company and its controlling Trusts. The two sides have also differed over board representation and capital allocation.The board’s differences, however, did not completely paralyse its functioning. A Tata Sons meeting in May was described by people familiar with the deliberations as constructive, with Noel focusing on businesses, including Air India and BigBasket, while Chandrasekaran led reviews of group companies. But with no agreement even after reached after six months, Chandra said the uncertainty could no longer continue.“Tata Sons is a very large institution and there are many strategic projects that are under critical stages of execution,” he said. He added that having a leader in place after February 2027 was essential for the group’s growth, as well as for giving its partners, employees, investors and other stakeholders clarity.