Days after the demise of Ratan Tata, who steered the Tata Group to newer heights for three decades, his half-brother Noel Tata has been appointed as the new chairman of the Tata Trust. As per reports, Noel Tata will soon join the Board of Tata Sons, but before doing so he has reportedly sought legal advice on the implications of his dual positions within the organisation. As per reports, Noel Tata has sought advice particularly on whether he can continue to retain existing positions in the group’s companies.
Noel Tata officially took over the reins of the Tata Trust on October 11. Just one week into his tenure, a Times of India report indicates that Noel Tata is exploring the legalities surrounding his ability to maintain his chairmanship in various Tata Group companies while also leading the Tata Trust.
His appointment also positions him uniquely within the group, as he is the only member of the Tata family with representation on both Tata Sons and the Tata Trust. He is one of three nominees proposed to join the board of Tata Sons, which holds a 66% stake in the Tata Trust, alongside Venu Srinivasan and Vijay Singh.
Noel Tata’s decision to seek legal advice stems from the desire to clarify whether he can concurrently serve as chairman of certain Tata Group companies, especially given that his current role at the trust could present potential conflicts of interest.
Legal experts suggest that there are no significant legal barriers preventing him from holding both positions, particularly in non-executive capacities.
Noel Tata was previously considered a potential candidate to lead Tata Sons — the holding company of the Tata Group — when Ratan Tata was retiring in 2012. But the low-profile, Irish national Noel Tata saw his brother-in-law Cyrus Mistry take that role.
With the death of Ratan Tata, 67-year-old Noel succeeds him as the head of Tata Trusts, a collective of charities that indirectly controls the $165 billion business empire spread across 100 countries.
Ratan Tata, who is credited with taking Tata global and growing the conglomerate as one of India’s most respected groups, passed away on October 9 at the age of 86. He was the chair for Tata Trusts, which owns 66% of closely held Tata Sons Pvt Ltd, the holding company of the group.
Tata Sons is 65.9% owned by the trusts, 12.87% by half a dozen Tata Group companies, and 18.4% by the Mistry family. Tata Sons runs 30 firms across consumer goods, hotels, automobiles and airlines.
Noel Tata is known for his relatively low-profile leadership style, a stark contrast to predecessor’s more public-facing role. Though being on the board of several Tata Group firms, Noel has remained out of the limelight and instead focused on operations.
He is also on the board of key Sir Ratan Tata Trust and Sir Dorabji Tata Trust since 2019. His children – Maya, Neville and Leah – were appointed as trustees in multiple trusts associated with the Sir Ratan Tata Trust and Sir Dorabji Tata Trust earlier this year.
