Tata Trusts reviews governance at Sir Ratan Tata Trust; new trust deed under consideration, says report

Under the trust's existing framework, any new trustee can be inducted only with the unanimous consent of all serving trustees

• Tata Trusts may draft formal deed for Sir Ratan Tata Trust amid governance review.
• Regulatory changes urge SRTT to update its governance framework.
• Neville Tata's trustee induction delayed due to quorum issues, may be reconsidered.

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Tata Trusts is evaluating the possibility of drafting a formal trust deed for the Sir Ratan Tata Trust (SRTT) as part of a broader review of its governance architecture, people familiar with the matter told the Economic Times.

The issue has been discussed by Tata Trusts chairman Noel Tata with senior legal professionals, the Economic Times reported.

The review has gathered pace amid renewed focus on trustee appointments at SRTT. The Economic Times said a recent meeting called to consider the induction of Neville Tata as a trustee had to be postponed due to lack of quorum.

Under the trust's existing framework, any new trustee can be inducted only with the unanimous consent of all serving trustees. Neville Tata, son of Noel Tata, was appointed as a trustee of the Sir Dorabji Tata Trust (SDTT) in November 2025.

Currently, the trustees of the Sir Ratan Tata Trust include Noel Tata, Venu Srinivasan, Vijay Singh, Jimmy N Tata, Jehangir HC Jehangir and Darius Khambata, the Economic Times noted. Another meeting of Tata Trusts is scheduled to take place today, and Neville Tata's induction may again come up for consideration, officials close to the developments told the Economic Times. Tata Trusts declined to comment.

While the Sir Dorabji Tata Trust operates under a formal trust deed, the Economic Times pointed out that the Sir Ratan Tata Trust-set up in 1918-continues to function under a will and does not have a written trust deed.

Yash Vardhan Singh, counsel at Sarvaank Associates, told the Economic Times that recent regulatory changes have made it increasingly important for legacy trusts to move away from default statutory interpretations. "A trust deed allows leadership arrangements to be governed by mission-specific rules, reducing the risk of disputes over trustee tenures," Singh said.

He added that the issue has become more urgent following the Maharashtra Public Trusts (Amendment) Ordinance, 2025, which came into effect on September 1, 2025. The ordinance introduces fresh rules on trustee appointments and tenure. "For the Sir Ratan Tata Trust, which has operated under a 1918 will for over a century, the transition has become necessary after the ordinance capped perpetual trustees at 25% and mandated fixed tenures where governing documents are silent," Singh told the Economic Times.

The Economic Times noted that SRTT and SDTT are the two principal charitable arms of Tata Trusts and together hold about 52% of Tata Sons, the holding company of the Tata Group, placing them at the centre of group decision-making.

Legal experts told the Economic Times that executing a formal trust deed would mark a significant shift in SRTT's governance model, aligning it with contemporary trust law and reducing ambiguity around leadership and trustee tenure. Ajay Khatlawala, senior partner at Little & Co, said a trust deed would clearly define governance practices, internal administration and the rights and responsibilities of trustees. Madhavan Srivatsan, senior partner at Emerald Law, added that public trusts should proactively align their governing documents with the amended Maharashtra Public Trusts Act to ensure transparent and predictable governance.