Ratan Tata, chairman of Tata Trusts and interim chairman of Tata Sons clarified that there are no plans for his stepping down from the chairmanship of the Tata Trusts at this point in time.
“The reference to the media discussion with some Trustees relate to the process being put in place for the leadership succession in the Trusts in the future, to enable an ordered and smooth transition of leadership,” a statement from Tata Sons said.
Mr. Tata emphasized that the Trusts were undertaking many initiatives that had national impact and he is looking forward to continuing his involvement with these initiatives in the Trusts.
He was however keen that a process should be in place for a smooth succession at an appropriate time.
When asked about the process of selection of the chairman, a trustee of Tata Trusts told The Hindu , “It is defined by the Trust deed. Generally the process is – there is healthy debate among the trustees on who would need to be appointed. As per law, the trustees are the one to find a successor and it will need consent of trustees and one would also need to realize that trusteeship is a responsibility.”
Ratan Tata chairs Sir Dorabji Tata Trust and Ratan Tata Trust, that collectively holds about 53 per cent stake in Tata Sons and rest are held by smaller Trusts like Jamsetji Tata Trust, N R Tata Trust, JRD Tata Trust and Tata Education and Development Trust. All these trusts are separate legal entities with independent trustees and some of the trustees are common.
“It is not a position of pride or authority other than the fact that you get a salary. All the trustees don’t get anything, except their travel charges are paid. There is a responsibility with an unlimited liability. All the assets are in the Trustees’ names and so are the liabilities. Each trust is a different legal entity. So in one trust, there are 9 people, in one trust, there are 7 people, another trust there are 5 people – each selects their own chairman,” said the Trustee.
