MUMBAI: The boards of Ratan Tata Endowment Foundation (RTEF) and Ratan Tata Endowment Trust (RTET), which were bequeathed the late industrialist’s shares in Tata companies, are set for restructuring. The three siblings of Ratan Tata – his half-sisters Shireen and Deanne Jejeebhoy and his half-brother Noel Tata – are preparing to join as trustees, indicating that the family will continue to exercise some degree of control over his stake in Tata group companies.
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RTEF and RTET were established as legal custodians of Ratan Tata’s financial investments a couple of years before his demise in October 2024.
Ratan Tata owned 0.83% of Tata Sons, the holding company of the group. He also owned stakes in Tata Digital, Tata Motors and Tata Technologies. These shares have been willed to RTEF. He also held considerable investments in startups which will either be sold with proceeds going to RTET or transferred directly to the trust. His estate is estimated to be over Rs 10,000 crore.
RTEF functions as a section 8 company, while RTET operates under the Indian Trusts Act. Both organisations focus on supporting education and healthcare and uplifting vulnerable sections of society. They represent the causes closest to the late industrialist and the welfare activities he personally funded. The two trusts will enjoy voting rights proportionate to their stake in Tata group companies.
The current two-trustee structure at both organisations will expand to six trustees for RTEF and seven for RTET. Tata Sons chairmanN Chandrasekaran is expected to become managing trustee for both entities, which makes him a guiding force. However, as the Tata Sons’ articles of association restrict the chairman from becoming the chairman of any Tata Trust, he cannot chair either organisation.
The existing trustees at RTEF are former Tata Sons executive Raghavan Shastri and ex-Tata Realty and Infrastructure director Burzis Shapur Taraporevala. RTET’s current trustees include Tata Trusts‘ trustees Darius Khambata and Pramit Jhaveri. Khambata and Jhaveri are expected to step down due to their existing commitments with Tata Trusts. Tata Sons legal head Sidharth Sharma will join RTET as a trustee. These are the financial and legal minds within the group.
Jamsheed Poncha, from Chandrasekaran’s office, is set to be the CEO of both entities. However, unlike Poncha who will receive compensation, Chandrasekaran will not receive payment as managing trustee. This structure represents the first instance of a Tata Trust having both positions simultaneously.
The executors of Ratan Tata’s will are Shireen and Deanne Jejeebhoy, Darius Khambata, and Tata Trusts trustee Mehli Mistry. Apart from Mistry, all will serve on either or both boards of RTEF and RTET. Emails and messages sent to Noel Tata, who is also the chairman of Tata Trusts, Shireen Jejeebhoy and Deanne Jejeebhoy remained unanswered.
