MUMBAI: Noel Tata, who became chairman of Tata Trusts after half-brother Ratan Tata‘s death, has officially joined the board of Tata Sons, according to the company’s website. TOI first reported Noel’s upcoming appointment to the Tata Sons board in its Oct 17 edition.
Noel (67) is currently the only member from the Tata Group’s founding family to sit on boards of both Tata Trusts and Tata Sons. Noel’s half-brother, Jimmy Tata, as well as his three children Leah, Maya, and Neville, serve on various foundation boards within Tata Trusts.
Days after Noel’s appointment as Trusts’ chairman on Oct 11, the Trusts’ boards endorsed and approved his name as their third representative on the Tata Sons board. Subsequently, Trusts forwarded their nomination request to Tata Sons. According to rules, the company’s board must consider the matter within a fortnight of receiving such a request, with the deadline falling last week. Noel was inducted into the board of Tata Sons last week, within that timeframe. Venu Srinivasan and Vijay Singh serve as the other two nominees of the Trusts. Trusts hold about 66% in Tata Sons and their nominated representatives possess special voting rights.
Despite his position, Noel cannot assume the chairmanship of Tata Sons, as Trusts previously established a clear distinction between the leadership roles of Tata Sons and Trusts, ensuring that no single individual leads both organisations. The Shapoorji Pallonji Group, despite holding an 18% stake in Tata Sons, lacks board representation.
In 2012, Noel was considered for Tata Sons chairmanship upon Ratan Tata’s retirement. However, Ratan Tata’s concerns about Noel’s insufficient experience led to his rejection. Subsequently, Cyrus Mistry, Noel’s brother-in-law, was selected despite similar experience limitations. This arrangement ended in discord, resulting in Mistry’s removal from Tata Sons in 2016. In Jan 2017, Noel was again passed over when Ratan Tata selected N Chandrasekaran, who was then heading TCS, as chairman of Tata Sons.
As Trusts’ chairman and Tata Sons’ director, Noel will significantly influence the selection of the next Tata Sons chairman in 2028, when Chandrasekaran’s tenure concludes. Tata Sons manages 30 companies across various sectors, including consumer goods, and hotels.
