Tata stakeholders may look for an arbitrator to decide the appointment of trustees for the Ratan Tata Endowment Foundation (RTEF)'s board, the Economic Times reported, as there is no clear instructions written regarding this by late group patriarch Ratan Tata.
The foundation will be independent of Tata Trusts, the report said.
An arbitrator is an independent person or body officially appointed to settle a dispute.
The report said the arbitrator will likely be a retired Supreme Court chief justice. The arbitration could set a precedent for legacy foundation governance, the report added.
The arbitrator will decide whether the right to appoint trustees is with executors of Ratan Tata's will, the Tata family or members of Tata Trusts, the report added citing executives close to the matter.
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Moneycontrol couldn't independently verify the report.
In 2022, Ratan Tata had set up two entities that would be beneficiaries to his personal wealth. Those were RTEF and Ratan Tata Endowment Trust. Tata held 0.83 percent stake in Tata Sons, the holding company of Tata Group.
RTEF also has minor stakes in Tata Digital and Tata Technologies.
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