Ratan Tata’s Half-Siblings to Oversee His Stake in Tata Group
The late industrialist Ratan Tata’s half-siblings—Shireen Jejeebhoy, Deanne Jejeebhoy, and Noel Tata—are set to assume control over his stakes in Tata Group companies. This development follows the restructuring of the Ratan Tata Endowment Foundation (RTEF) and the Ratan Tata Endowment Trust (RTET), which have been designated as custodians of his financial investments.
Ratan Tata’s Bequeathed Shares
Ratan Tata held a 0.83% stake in Tata Sons, the conglomerate’s holding company, along with shares in Tata Digital, Tata Motors, and Tata Technologies. These holdings have been transferred to the RTEF. Additionally, his substantial investments in various startups will either be liquidated, with proceeds directed to the RTET, or transferred directly to the trust. The total value of his estate is estimated to exceed ₹10,000 crore.
Trusts’ Focus on Education and Healthcare
Both RTEF and RTET are dedicated to advancing education and healthcare initiatives, reflecting the philanthropic priorities that were significant to Ratan Tata. As stakeholders in Tata Group companies, these trusts will possess voting rights corresponding to their shareholdings, thereby influencing corporate decisions.
Expansion of Trustee Boards
The governance structure of these trusts is undergoing expansion. RTEF’s board will increase from two to six trustees, while RTET’s will grow to seven trustees. Tata Sons Chairman N. Chandrasekaran is anticipated to take on the role of managing trustee for both entities, providing strategic guidance. However, due to Tata Sons’ articles of association, which prevent the chairman from leading any Tata Trust, he will not serve as the chairman of either organization.
Current and Incoming Trustees
Presently, RTEF is managed by former Tata Sons executive Raghavan Shastri and ex-Tata Realty and Infrastructure director Burzis Shapur Taraporevala. RTET’s trustees include Tata Trusts’ members Darius Khambata and Pramit Jhaveri, who are expected to step down due to their existing commitments. The inclusion of Ratan Tata’s half-siblings as trustees ensures that the family maintains a degree of oversight and involvement in the management of his substantial holdings within the Tata Group.
This strategic restructuring signifies a continued familial influence over Ratan Tata’s legacy and the philanthropic endeavors he championed throughout his life.
