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Noel joins Tata Sons as board member; cannot become chairman

As the Trusts' chairman and Tata Sons' director, Noel will significantly influence the selection of the next Tata Sons chairman in 2028, when Mr Chandrasekaran's tenure ends.

By Dhanam News Desk
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Noel Tata

Noel Tata, the chairman of Tata Trusts, is now a member of Tata Sons' board

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Noel Tata, 67, who was elected chairman of Tata Trusts after his half-brother Ratan Tata's death, has joined the board of Tata Sons.

Noel Tata is currently the only member of the Tata Group's founding family to sit on both the boards of Tata Trusts and Tata Sons, a Times of India report noted. His half-brother, Jimmy Tata, and his three children, Leah, Maya, and Neville, serve on various foundation boards within Tata Trusts.

Days after Noel Tata's appointment as the Trusts' chairman on Oct 11, the Trusts' boards endorsed and approved his name as their third representative on the Tata Sons board. Noel Tata was inducted into the board of Tata Sons last week. Venu Srinivasan and Vijay Singh serve as the other two nominees of the Trusts. The Trusts hold about 66% of Tata Sons and their nominated representatives possess special voting rights.

Why Noel cannot head Tata Sons

Despite his position, Noel Tata cannot assume the chairmanship of Tata Sons, as the Trusts previously established a clear distinction between the leadership roles of Tata Sons and the 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 Tata was considered for Tata Sons chairmanship upon Ratan Tata's retirement. However, Ratan Tata's concerns about Noel Tata'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 Mr 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 the Trusts' chairman and Tata Sons' director, Noel will significantly influence the selection of the next Tata Sons chairman in 2028, when Mr Chandrasekaran's tenure concludes. Tata Sons manages 30 companies across various sectors, including consumer goods, and hotels.