Noel Tata, new chairman of Tata Trusts, is understood to be seeking counsel on his continuation as chairman of certain group firms after his elevation last week, following the demise of his stepbrother Ratan Tata.
Legal experts close to the conglomerate say there are no legal or contractual restrictions on Tata continuing to chair group companies since it is a non-executive role. “Ultimately, it will be his call as to what works best for everyone. There is no immediate hurry to take any decision,” said a person in the know.
Group insiders said that since Tata’s succession happened overnight, he will need time to chalk out what works best in the given situation. “He has been managing very large, successful companies. To find someone to succeed him overnight is not easy,” a company official close to the development said, on condition of anonymity.
Tata Trusts appointed Tata as chairman to head the philanthropic entities that hold the key to the sprawling empire.
Currently, Tata serves as the non-executive director and chairperson of Tata Investment Corporation, Trent and Voltas, besides as vice-chairperson and non-executive director at Titan Company and Tata Steel.
Tata, 67, quit his executive roles at group companies at 65 – the age at which the group mandates such retirement. Executives are also mandated to give up all board positions at 70. However, there is no retirement age for a Tata trustee or chairperson.
Kosturi Ghosh, partner at law firm Trilegal, said Tata does not seem to be a key managerial person in any of the companies. “These positions are non-executive, so there should be no restrictions on him being the chairman on these boards even as he becomes Tata Trusts chairman,” she said.
Noel Tata and Tata Sons, the group holding firm, did not comment.
Ratan Tata was the last person to hold dual roles as chairman of Tata Trusts and chairman emeritus of Tata Sons, a practice that ended in 2022 when Tata Sons amended its Articles of Association to prevent one person from holding both roles.
Noel Tata took over as chairman of Trent in April 2014 following the retirement of FH Kavarana. Under his leadership, Trent’s revenue surged 430% from Rs 2,333 crore in FY14 to Rs 12,375 crore last fiscal, while its profits soared to Rs 1,477 crore, from a Rs 19 crore loss, and shareholders saw a remarkable 7,600% return. Trent has consistently outpaced the sector in revenue, retail expansion and operating profits.
Tata became chairman of Voltas in August 2017, after Ishaat Hussain’s retirement. Voltas revenue has doubled from Rs 6,404 crore in FY17 to Rs 12,481 crore in FY24. However, profits have declined from Rs 578 crore to Rs 248 crore. The Voltas stock has risen 253% since Tata took over.
In recent years, the company has lost market share in the refrigeration and air conditioning segment due to increased competition.
Tata Investment Corporation, where Tata also serves as chairman, is focused on investments in both listed and unlisted equity shares. Its key holdings include 5.97% in Tata Chemicals, 4.65% in Tata Consumer Products, and 4.28% in Trent. Over the past five years, Tata Investment Corporation’s stock has delivered an impressive 790% return, significantly outperforming the Nifty, which gained 119%. Tata Trusts currently has its nominee directors, Vijay Singh and Venu Srinivasan, on the board of Tata Sons.
Legal experts close to the conglomerate say there are no legal or contractual restrictions on Tata continuing to chair group companies since it is a non-executive role. “Ultimately, it will be his call as to what works best for everyone. There is no immediate hurry to take any decision,” said a person in the know.
Group insiders said that since Tata’s succession happened overnight, he will need time to chalk out what works best in the given situation. “He has been managing very large, successful companies. To find someone to succeed him overnight is not easy,” a company official close to the development said, on condition of anonymity.
Tata Trusts appointed Tata as chairman to head the philanthropic entities that hold the key to the sprawling empire.
Currently, Tata serves as the non-executive director and chairperson of Tata Investment Corporation, Trent and Voltas, besides as vice-chairperson and non-executive director at Titan Company and Tata Steel.
Tata, 67, quit his executive roles at group companies at 65 – the age at which the group mandates such retirement. Executives are also mandated to give up all board positions at 70. However, there is no retirement age for a Tata trustee or chairperson.
Kosturi Ghosh, partner at law firm Trilegal, said Tata does not seem to be a key managerial person in any of the companies. “These positions are non-executive, so there should be no restrictions on him being the chairman on these boards even as he becomes Tata Trusts chairman,” she said.
Noel Tata and Tata Sons, the group holding firm, did not comment.
Ratan Tata was the last person to hold dual roles as chairman of Tata Trusts and chairman emeritus of Tata Sons, a practice that ended in 2022 when Tata Sons amended its Articles of Association to prevent one person from holding both roles.
Noel Tata took over as chairman of Trent in April 2014 following the retirement of FH Kavarana. Under his leadership, Trent’s revenue surged 430% from Rs 2,333 crore in FY14 to Rs 12,375 crore last fiscal, while its profits soared to Rs 1,477 crore, from a Rs 19 crore loss, and shareholders saw a remarkable 7,600% return. Trent has consistently outpaced the sector in revenue, retail expansion and operating profits.
Tata became chairman of Voltas in August 2017, after Ishaat Hussain’s retirement. Voltas revenue has doubled from Rs 6,404 crore in FY17 to Rs 12,481 crore in FY24. However, profits have declined from Rs 578 crore to Rs 248 crore. The Voltas stock has risen 253% since Tata took over.
In recent years, the company has lost market share in the refrigeration and air conditioning segment due to increased competition.
Tata Investment Corporation, where Tata also serves as chairman, is focused on investments in both listed and unlisted equity shares. Its key holdings include 5.97% in Tata Chemicals, 4.65% in Tata Consumer Products, and 4.28% in Trent. Over the past five years, Tata Investment Corporation’s stock has delivered an impressive 790% return, significantly outperforming the Nifty, which gained 119%. Tata Trusts currently has its nominee directors, Vijay Singh and Venu Srinivasan, on the board of Tata Sons.
You may also like
Big Brother star Ryan Bradshaw details shocking booze rule in unaired scenes
Liam Payne, former One Direction member, dies at 31 in Argentina hotel fall
Liam Payne's poignant final message to fans in last moments before sudden death
BREAKING: Harry Styles' mum shares heartbreak as One Direction's Liam Payne dies aged 31
Harris' Response To Question On Gender-Affirming Surgery For Inmates Criticised: 'She Deflected
Punjab holds camp for real estate certificates
Bret Baier Alleges Kamala Harris Showed Up 15 Minutes Late For Interview
Hundreds of "mysterious black balls" wash ashore on popular Sydney beach
'Only confirms ... ': India on Trudeau's admission of not providing 'hard proof' on Nijjar killing
'When I first experienced menopause I thought I was having a heart attack - now it's my passion'
Budy Bags $4.2 Mn To Simplify Sales & Marketing For Businesses
State Pension payment rise to be missed by nearly half a million people next year
Valmiki Jayanti 2024 Wishes Messages, Quotes, Images, Greetings And WhatsApp Status To Share
South By Southeast: Marriage Equality – Will India Heed The Thai Message?
Who Is Fuelling Discord In India's Electoral Politics?
Valmiki's Transformation From Thief to Sage: 5 Life Lessons Every Kid Should Learn From Ramayana Author Story
Editorial: Many Issues At Stake In The All-Important Maharashtra Poll
Guiding Light: Shifting Into The Neutral Gear Of Life
Kamala Harris emphasizes her break from Biden and slams Trump in fiery Fox interview
Working on prosecuting flight threat culprits: Government