New Delhi, March 3 -- Most companies have an institutional document ostensibly about governance, but one that functions more opportunistically. Filed under headers like Leadership Norms or Succession Policy, it dutifully lists age limits and tenure caps. Except that, at the appointed moment, a special resolution is passed to grant an exemption to the rule.

Last week's reports that the Tata Sons Pvt. board deferred a decision on extending Chairman Natarajan Chandrasekaran's tenure for a third term, is one such instance. Chandrasekaran will be 63 when his current term ends in February 2027, and will turn 65 in June 2028. Any extension that takes his tenure beyond that requires a special resolution and a formal exemption from Tata Sons' own...