Noel Tata and Jejeebhoy sisters join board of Ratan Tata's personal trust

Mumbai: Noel Tata, Chairman of Tata Trusts, along with Shireen and Deanna Jejeebhoy-half-sisters of the late Tata patriarch, Ratan Tata-have been appointed to the board of the Ratan Tata Endowment Trust (RTET). Their appointments were made by the existing trustees, Pramit Jhaveri and Darius Khambata, according to sources.

Tata group executives RR Shastri and Jamsheed Poncha have also been appointed to the Trust and following these appointments, Khambata has stepped down from the RTET board.

Shireen and Deanna Jejeebhoy, Noel Tata, Jhaveri and Khambata declined to comment.

Sources said RTET can also collaborate with Tata Trusts on any common scalable projects.

Deanna and Shireen Jejeebhoy are also executors of Ratan Tata's will. There is no bar on beneficiaries or executors of a will to hold positions in entities which are mentioned in the will, according to legal experts. They said personal laws are private and generally cannot impose restrictive aspects in a will.

Distribution of Ratan Tata's wealth will be done only after the will is submitted for probate and certified by the high court, a process that could take up to six months.

Ratan Tata had set up this personal endowment trust in addition to the Ratan Tata Endowment Foundation with the aim of estate planning, with the proceeds from the corpus being harnessed to fund future charities.

According to Shrenik Gandhi, Managing Partner, Chambers of Shrenik Gandhi, Rata Tata Endowment Foundation (RTEF) is a Section 8 company registered as per the provisions of the Companies Act, 2013, and its objective mainly appears to be philanthropic in nature, whereas, a private trust like RTET is governed by the provisions of the Indian Trusts Act, 1882.

Legal experts said an endowment fund primarily functions as a financial mechanism designed to preserve and grow capital through prudent investment strategies, to generate continuous income for charitable purposes. In contrast, a trust represents the legal arrangement or entity that holds, manages, and administers the assets, ensuring they are utilized according to the trust's clearly defined charitable objectives and conditions.

"This is significant in strengthening the governance framework and operational oversight," said Nilesh Tribhuvann, Managing Partner, White & Brief - Advocates & Solicitors. "Such appointments can provide enhanced fiduciary responsibility, reinforce accountability, and foster agile decision-making processes. This move is strategically poised to optimize operational efficiency, ensuring that philanthropic endeavours align seamlessly with Ratan Tata's estate planning intentions and charitable vision," adds Tribhuvann.