A major boardroom dispute at Tata Sons has intensified after directors backed a five-year extension for chairman N Chandrasekaran and moved ahead with preparations for a potential public listing of the holding company.

The September 17 board meeting exposed a sharp disagreement between Chandrasekaran and Tata Trusts chairman Noel Tata over the future structure and governance of Tata Sons. Noel Tata argued that the company should make further efforts to remain privately held and explore legal and regulatory options before considering a listing.

The board voted 4-1 against that position. Along with Chandrasekaran and Noel Tata, the meeting included Tata Sons directors Venu Srinivasan, Harish Manwani, Saurabh Agrawal and Anita Marangoly George.

The dispute follows the Reserve Bank of India’s September 11 decision rejecting Tata Sons’ request for an exemption from regulations that could require it to list publicly.

Tata Trusts, which owns about 66 per cent of Tata Sons, has maintained that the group’s decision to remain private should continue. Tata Sons, meanwhile, has indicated that the board’s latest decisions have settled the matter.

The disagreement could have wider implications for Tata Group governance, particularly as its businesses face challenges and major investments across technology, aviation, automobiles and semiconductors.