Mumbai: Tata Sons, the holding company for the Tata group companies, has enhanced the retirement age for the directors on the boards of various Tata companies. The decision is expected to ease speculation about the issue of succession in the Tata group.

According to the earlier policy adopted by the Tata Group in 2000, the retirement age for executive and whole time directors in group companies was 65 years while the non-executive directors were to retire at the age of 70.

Under the revised guidelines adopted by the group, the retirement age has been maintained at 65 years for executive and whole time directors whereas the retirement age for the non-executive directors has been reverted to 75 years.

The group has said that the revision in the age bar has been made so that the group companies "benefit from the rich experience of these directors who add great value to the strategy and direction of Tata group companies."

According to sources, Ratan Tata who is 67 years old would have turned 70 in the year 2007. Now, the change in the guidelines, will provide him the option to continue working till the year 2012, in case he chooses to exercise the option. Similarly, J J Irani (69), R K Krishna Kumar (67), N A Soonawala (70), Syamal Gupta (70) would be the other beneficiaries of the revision and could continue for another five years beyond 70 if they want to.

According to the group company statement, the board has revised the guidelines taking into account recent developments in the regulatory environment relating to good corporate governance.

As per the revised guidelines, there will be nominations committees for the selection of new directors based on certain criteria. Besides, the tenure for independent directors will now be specified.