New Delhi, Sept. 18 -- On 17 September, the Tata Sons board approved a third five-year term for N. Chandrasekaran as executive chairman. For a group that has long set India's standard for corporate governance, the decision is hard to understand. It was taken in haste, and the Group's reputation will pay the price.

My concern is not the chairman's ability. It is how the board of India's largest industrial group has conducted itself.

On 12 August, the chairman publicly said he would not seek another term. Five weeks later, the board has reappointed him. Shareholders, employees and the public have not been told what changed.

Nobody makes such a statement casually. A prudent board would have found out the reasons and addressed them before ...