Noel Tata, chairman of Tata Trusts, which holds a significant 66% stake in Tata Sons, is expected to be appointed to the board of Tata Sons. This appointment will make Noel the only member of the Tata family to serve on both the Tata Sons and Tata Trusts boards. He will be one of three nominees from Tata Trusts on the Tata Sons board, alongside Venu Srinivasan and Vijay Singh.
Anticipated Move by Tata Group Observers
Noel’s appointment has been widely anticipated, especially given his previous consideration for the role of chairman of Tata Sons. Speculation about his leadership began in 2011 when discussions emerged about him potentially succeeding Ratan Tata. Further rumors resurfaced when Noel became a trustee of the Sir Ratan Tata Trust in 2019 and later the Sir Dorabji Tata Trust in 2022. Despite this, the role of chairman was ultimately given to Cyrus Mistry, who is Noel’s brother-in-law, and later to the current chairman, N Chandrasekaran.
Separate Leadership Roles Due to Governance Rules
Even with Noel joining the Tata Sons board, Chandrasekaran will remain as chairman. Tata Sons has a policy, set out in its Articles of Association (AoA), that prevents the same individual from holding the chairmanship of both Tata Sons and Tata Trusts at the same time. This rule was implemented to avoid any conflicts of interest and ensures that Noel, who is 67 years old, will not take over as chairman of Tata Sons. Ratan Tata was the last person to hold both positions concurrently.
Structure of Tata Sons Board and Influence of Tata Trusts
According to Tata Sons’ AoA, the Trusts are allowed to nominate up to one-third of the directors on the board of the holding company, as long as they hold at least 40% of the company’s shares. Directors nominated by the Trusts also have veto power over decisions made by the board. Currently, the Tata Sons board comprises nine directors, including two executive directors (one of whom is Chandrasekaran), three non-executive directors (which include Venu Srinivasan and Vijay Singh), and four independent directors from outside the company.
Noel Tata’s Key Roles Within the Tata Group
In addition to his role in Tata Trusts, Noel Tata holds leadership positions across multiple Tata Group companies. He is the chairman of Trent, Voltas, Tata Investment Corporation, and Tata International. He also serves as vice-chairman of Titan and Tata Steel. His connections to the Tata family are further strengthened through his marriage to Aloo Mistry, the sister of the late Cyrus Mistry. The Mistry family itself holds a significant stake in Tata Sons.
The Tata family’s influence on the group spans generations. Noel’s father, Naval Tata, was the chairman of Sir Ratan Tata Trust and also served as deputy chairman of Tata Sons. His mother, Simone Tata, was a director of Tata Industries until her retirement in 2006. Noel’s half-brother, Jimmy Tata, is a trustee of the Sir Ratan Tata Trust, and Noel’s three children, Leah Tata, Maya Tata, and Neville Tata, are actively involved in leadership roles across five trusts associated with the Sir Dorabji Tata Trust and the Sir Ratan Tata Trust.
With Noel Tata’s appointment to the Tata Sons board, the family’s legacy continues to play a significant role in shaping the future of the Tata Group, while adhering to the company’s governance principles that separate the chairmanship of Tata Sons and Tata Trusts.