Ratan Tata's half-siblings to manage his stake in Tata companies
What's the story
Ratan Tata's family members will become trustees of the Ratan Tata Endowment Foundation (RTEF) and Ratan Tata Endowment Trust (RTET).
They own substantial shares and investments in several Tata Group companies.
The late industrialist's half-sisters Shireen and Deanne Jejeebhoy and half-brother Noel Tata will be inducted on the boards of these trusts.
This move shows the family influence over Ratan's stake in the group will continue.
Trusts' role
Custodians of Ratan Tata's financial legacy
The RTEF and RTET were created as legal custodians of Ratan Tata's financial investments, a few years before his death in October 2024.
The industrialist owned 0.83% of Tata Sons, the group's holding company, and had shares in Tata Digital, Tata Motors, and Tata Technologies.
These shares have been bequeathed to RTEF while his massive start-up investments will either be sold with proceeds going to RTET or shall be transferred directly to the trust.
Social mission
RTEF and RTET: Champions of social causes
While the RTEF is a Section 8 company, the RTET is governed by the Indian Trusts Act.
Both the organizations focus on supporting education and healthcare programs, and uplifting vulnerable sections of the society.
The causes were close to Tata's heart and reflect his own philanthropic efforts.
The two trusts will also keep voting rights in proportion to their stake in Tata Group companies.
Leadership transition
Restructuring and leadership changes in RTEF and RTET
The existing two-trustee structure at RTEF and RTET will be expanded to six and seven trustees, respectively.
Tata Sons Chairman N Chandrasekaran is tipped to be Managing Trustee for both. However, he can't chair either organization due to Tata Sons's articles of association restrictions.
The existing trustees at RTEF are ex-Tata Sons executive Raghavan Shastri and ex-Tata Realty Director Burzis Shapur Taraporevala.
Trustee reshuffle
Trustee changes and new appointments at RTET
The current trustees of RTET are Tata Trusts's trustees Darius Khambata and Pramit Jhaveri. Both are likely to step down owing to their commitments with Tata Trusts.
Tata Sons legal head Sidharth Sharma will be appointed as a trustee of RTET, bringing his legal acumen to the trust's operations.
The executors of Ratan Tata's will are the Jejeebhoy sisters, Khambata, and Tata Trusts trustee Mehli Mistry.