“Decision not to seek a third term appears to reflect a broader misalignment between sections of the Tata Sons board and the leadership team,” said Shriram Subramanian, founder and managing director of InGovern. Governance concernsThe issue brings in governance concerns because Tata Trusts hold approximately 66 percent of Tata Sons, giving them controlling shareholder influence over the holding company. Tata Sons, in turn, holds substantial interests in major operating companies, which are separate legal entities with their own boards, shareholders and statutory responsibilities. “Ownership of Tata Sons does not make the trusts owners of the assets of every Tata company, nor does it permit them to bypass the independent boards of subsidiaries.” The group needs to decide who will lead Tata Sons after February 20, 2027, while providing clearer institutional mechanisms for resolving differences between its controlling shareholder, board and management.