Not for the first time, Noel Tata faces the hurdle of becoming the Chairman of Tata Sons. Some thirteen years ago, he was in a similar situation when he could not manage the top post.
As per the Times of India, in 2011, when talks were on about Noel Tata as the possible candidate for the post of Chairman of Tata Sons right after Ratan Tata’s resignation, the post was managed to be given by the well-called regulatory body of Tata Sons with Noel Tata’s brother-in-law, Cyrus Mistry.
In 2019, when Noel Tata was appointed as a trustee of the Sir Ratan Tata Trust, there had already been talk of making him the Chairman of Tata Sons.
Likewise, in 2022, when he again turned into a trustee of the Sir Dorabji Tata Trust, he was not given the chairmanship of Tata Sons again.
In 2022, under the leadership of Tata, Tata Group made a rule such that there would be no more conflicts of interest.
It amended its Articles of Association to prohibit one person from being Chairman of Tata Trusts and Chairman of Tata Sons at the same time.
Since Noel Tata is already the Chairman of Tata Trusts, he cannot assume the role of Chairman of Tata Sons. Notably, Ratan Tata was the last member of the Tata family to hold both positions together.
Tata Sons is a holding company to all Tata Group companies and holds significant stakes in the very same.
Tata Trusts have 66% of the stake in Tata Sons, so the Chairman of Tata Trusts effectively dominates the entire conglomerate.
However, the true power of influence rests with the Chairman of Tata Sons. In this way, Ratan Tata affected the rule that one should not hold both positions together.
