MUMBAI: Noel Tata, chairman of Tata Trusts, which holds an roughly 66% stake in Tata Sons, is about to be appointed to the board of the latter.
Noel would be the sole member of the Tata Group‘s founding household to carry positions on boards of each Tata Sons and Tata Trusts. He might be one three Trusts’ nominees on the Tata Sons board, the opposite two being Venu Srinivasan and Vijay Singh.
Noel’s appointment to the Tata Sons board has been anticipated by Tata Group observers, as he was beforehand thought-about a possible candidate for the chairman’s function.Hypothesis about him succeeding Ratan Tata in 2011 and his induction on the Tata Sons board arose when he grew to become a trustee of Sir Ratan Tata Belief in 2019 and Sir Dorabji Tata Belief in 2022. Nonetheless, the chairman’s place finally went to Cyrus Mistry, his brother-in-law, and later to N Chandrasekaran.
AoA barred identical particular person from being chair of each Tata Sons, Tata Trusts concurrently
Regardless of Noel’s appointment as a director on the Tata Sons board, Chandrasekaran will stay the corporate’s chairman. To keep away from potential conflicts of curiosity, Tata Sons amended its articles of affiliation (AoA) to forestall the identical particular person from holding the chairmanship of each Tata Sons and Tata Trusts concurrently.
This regulation successfully precludes Noel, 67, from turning into the chairman of Tata Sons. Ratan Tata was the final particular person to carry each positions concurrently.
In accordance with Tata Sons’ AoA, Trusts can nominate one-third of the administrators on the holding firm’s board, supplied they maintain at the least 40% stake. The Trusts’ administrators even have veto energy over board choices. At present, Tata Sons has 9 administrators, together with two government administrators (one being Chandrasekaran), three non-executive administrators (two being Venu Srinivasan and Vijay Singh) and 4 exterior/unbiased administrators.
Aside from his function in Tata Trusts, Noel serves as chairman of a number of Tata Group firms, together with Trent, Voltas, Tata Funding Company, and Tata Worldwide. He’s additionally vice-chairman of Titan and Tata Metal. Noel is married to Aloo Mistry, sister of Cyrus Mistry; the Mistry household holds a major stake in Tata Sons. Noel’s household has a powerful presence within the Tata Group. His father, Naval Tata, served as chairman of Sir Ratan Tata Belief and deputy chairman of Tata Sons. His mom, Simone Tata, was a director of Tata Industries till her retirement in 2006. Noel’s halfbrother, Jimmy Tata, is a trustee of Sir Ratan Tata Belief, and his three kids, Leah Tata, Maya Tata, and Neville Tata, maintain positions on the boards of 5 Trusts affiliated with Sir Dorabji Tata Belief and Sir Ratan Tata Belief.
