THIS rule made by Ratan Tata won't allow Noel Tata to become Tata Sons chairman, it is...

Veteran industrialist Ratan Tata's stepbrother, Noel Tata, was appointed chairman of both key Tata Trusts, following Ratan Tata's death. This gives Noel Tata significant control over the entire Tata group. However, he cannot become the chairman of Tata Sons, the company that controls all other Tata companies. Tata Sons holds control over more than a dozen companies in the Tata Group, but Noel Tata is ineligible to take its top position.

This isn’t the first time Noel Tata has faced obstacles in becoming Tata Sons' chairman. In 2011, there were strong speculations that he would take over after Ratan Tata stepped down, but the role was given to Cyrus Mistry, Ratan Tata's brother-in-law. Again in 2019 and 2022, when Noel was made a trustee of two major Tata trusts, rumours circulated about him becoming Tata Sons' chairman, but the position continued to elude him.

Two years ago, in 2022, under Ratan Tata's leadership, a rule was passed that prevents the same person from holding both the chairmanship of Tata Trusts and Tata Sons. As Noel Tata currently leads the Tata Trusts, he can't become the chairman of Tata Sons.

Tata Sons holds major stakes in all companies within the Tata Group, making its chairmanship highly influential. This separation of roles, initiated by Ratan Tata, ensures that no single person holds too much power within the group.