Ratan Tata’s Endowment Trust Gains New Members
Noel Tata, Shireen, and Deanna Jejeebhoy Join the Board
Noel Tata, the head of Tata Trusts, has become a member of the Ratan Tata Endowment Trust (RTET) board. He is joined by Shireen and Deanna Jejeebhoy, half-sisters of the late Ratan Tata. The current trustees, Pramit Jhaveri and Darius Khambata, made these appointments.
New Appointees from Tata Group
- RR Shastri
- Jamsheed Poncha
RTET has also added two Tata group executives, RR Shastri and Jamsheed Poncha, to its ranks. Following these additions, Khambata has stepped down from the RTET board.
Possible Collaboration with Tata Trusts
Sources suggest that RTET may collaborate with Tata Trusts on large-scale projects of mutual interest.
Deanna and Shireen Jejeebhoy: Executors of Ratan Tata’s Will
Deanna and Shireen Jejeebhoy are executors of Ratan Tata’s will. Legal experts confirm that there are no restrictions preventing will beneficiaries or executors from holding positions in organizations mentioned in the will. They note that personal laws are private and usually cannot impose restrictive elements in a will.
In Due Time
The distribution of Ratan Tata’s assets will begin after the will goes through probate and receives high court certification, a process that typically takes up to six months.
Ratan Tata’s Estate Planning
Ratan Tata created this personal endowment trust along with the Ratan Tata Endowment Foundation for estate planning purposes. The trust’s corpus earnings will be used to support future charitable initiatives.
Differences Between RTEF and RTET
- Ratan Tata Endowment Foundation (RTEF): Operates as a Section 8 company under the Companies Act, 2013, focusing mainly on philanthropic activities.
- Ratan Tata Endowment Trust (RTET): Being a private trust, falls under the jurisdiction of the Indian Trusts Act, 1882.
Endowment Funds and Trusts
An endowment fund is a financial instrument that aims to maintain and grow capital through careful investment strategies to generate sustained income for charitable work. A trust, on the other hand, serves as the legal structure that manages, operates, and oversees assets, ensuring their use aligns with specified charitable goals and conditions.
“This is important for enhancing the governance framework and operational oversight,” said Nilesh Tribhuvann, Managing Partner, White & Brief – Advocates & Solicitors. “Such appointments can provide increased fiduciary responsibility, reinforce accountability, and promote agile decision-making processes. This move is strategically positioned to optimize operational efficiency, ensuring that philanthropic endeavors align seamlessly with Ratan Tata’s estate planning intentions and charitable vision,” adds Tribhuvann.
