Ratan Tata’s death has left a crucial leadership void at Tata Trusts, the philanthropic entities that play a crucial role in steering the $165 billion Tata Group.

Ratan Tata reportedly did not appoint a successor before his death, leaving the decision on who will lead Tata Trusts to the board of trustees.

These trusts, namely the Sir Dorabji Tata Trust and Sir Ratan Tata Trust, are the major shareholders of Tata Sons and own almost 52% of the company. The trustees now face the task of selecting a new chairman, with a potential interim leader to be appointed until a final decision is made.

Historically, the leadership of Tata Trusts has been linked to the Tata family and the Parsi community. Ratan Tata’s tenure was the last time an individual held the role of chairman of both Tata Sons and Tata Trusts.

The company’s articles of association were amended in 2022, keeping these roles separate, creating a structural shift in governance. With Tata’s death, speculation has arisen over who could take over the role of chairman of Tata Trusts, which is a crucial position for maintaining stability within India’s largest business conglomerate.

Key figures on the board include Venu Srinivasan, a TVS industrialist, and Vijay Singh, a former defense minister, both of whom serve as vice-chairmen of the Trusts.

They have been involved in the board of Tata Trusts since 2018, but their prospects of becoming chairman appear limited. Another trustee, Noel Tata, Ratan Tata’s half-brother and chairman of Trent, is widely seen as a leading candidate. At 67, Noel’s appointment would reflect the preference within the Parsi community for a family member to head the trusts. His experience at the Tata Group, spanning over forty years, adds to his potential candidacy.

Noel Tata’s involvement with the Trusts began in 2019 when he joined as a trustee of the Sir Ratan Tata Trust, followed by his appointment to the board of the Sir Dorabji Tata Trust in 2022. His entry into these roles was interpreted by many as a step aimed at ensuring continuity in the leadership of Tata Trusts. If selected, Noel would become the 11th chairman of the Sir Dorabji Tata Trust and the sixth chairman of the Sir Ratan Tata Trust, continuing a tradition that has often seen Parsis at the helm.

Although Noel is a strong candidate, the final decision will be made through a consensus among the thirteen trustees, which include other influential figures such as Mehli Mistry, a close confidante of Ratan Tata, and Darius Khambata, a senior lawyer who had advised Ratan Tata on the follow-up. business. It is expected that the process will take into account Tata’s personal wishes, which, while not legally binding, could guide the trustees to a decision that respects his vision for the future of the Trusts.

The decision on the new chairman is crucial as it will determine the future of Tata Trusts and their relationship with Tata Sons. Whoever is chosen will have to maintain the delicate balance between the philanthropic objectives of the Trusts and the commercial interests of the Tata Group.