Monday, June 27 2005 20:45 Hrs (IST) - World Time -

Mumbai: In a significant development that ends the prolonged speculation about the succession in India's leading corporate house Tatas virtually extended the term of Group Chairman Ratan Tata till 2012.

The holding company Tata Sons of the over Rs 75,000 crore group, decided at a recent Board meeting to raise the retirement age of non-executive directors from 70 to 75, thus potentially extending Ratan Tata's, who retired as Executive Chief and started functioning as non executive Chairman since 2002, tenure upto 2012.

However, the option to continue beyond the age of 70 would be with Ratan Tata as per the guidelines approved by the Board on retirement.

When contacted, a Tata spokesperson told sources in Mumbai that, "The Board of Tata Sons has adopted revised guidelines for the composition of the Board of Directors," and added that accordingly the "retirement age for non-executive directors has been reverted to 75 years.

"This allows the company to continue to benefit from the rich experience of these directors, who add great value to the strategy and direction of Tata group companies," he said.

Prior to this decision, Rata Tata was slated to retire in 2007, generating speculation about his successor with many names including Noel Tata.