Noel Tata, Chairman of Tata Trusts, along with half-sisters of late Tata patriarch Ratan Tata, Shireen and Deanna Jejeebhoy have been appointed to the board of the Ratan Tata Endowment Trust (RTET), sources told Economic Times. Their appointments were made by the existing trustees, Pramit Jhaveri and Darius Khambata, sources confirmed. Further, the report stated that Tata group executives RR Shastri and Jamsheed Poncha have also been appointed to the Trust. Following these appointments, Darius Khambata has stepped down from the RTET board.
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According to sources as stated by ET, RTET can also collaborate with Tata Trusts on any common scalable projects.
Shireen and Deanna Jejeebhoy are also the executors of Ratan Tata’s will. Per legal experts, there is no bar on beneficiaries or executors of a will to hold positions in entities which are mentioned in the will.
Ratan Tata’s wealth distribution will be done only after the will is submitted for probate and certified by the high court, a process that could take up to six months.
RTET was set up by Ratan Tata in addition to the Ratan Tata Endowment Foundation with the aim of estate planning, with the proceeds from the corpus being harnessed to fund future charities. While the objective of RTEF appears to be philanthropic in nature, private trust like RTET is governed by the provisions of the Indian Trusts Act, 1882. According to legal experts, an endowment fund primarily functions as a financial mechanism designed to preserve and grow capital through prudent investment strategies, to generate continuous income for charitable purposes. However, a trust represents the legal arrangement that holds, manages, and administers the assets, ensuring they are utilized according to the trust’s clearly defined charitable objectives and conditions.
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