A new Maharashtra government rule capping the number of lifetime trustees is expected to have direct implications for Tata Trusts, potentially prompting changes to its longstanding governance framework.
The Maharashtra Public Trusts (Amendment) Ordinance, 2025 (Ord. 7 of 2025)—notified in September—limits perpetual trustees to one-fourth of a trust’s total board strength.
This will impede the implementation of a key resolution Tata Trusts had passed in October last year, saying trustees will be renewed for life at the end of their tenures. The new ordinance effectively will create two classes of trustees—perpetual or lifetime trustees will be one category, while tenure-term trustees will be the other. It also means trusts will have to be severely choosy about who gets to be lifetime trustees. Even to have two perpetual trustees, there will need to be eight trustees overall. The two main Tata trusts—Sir Ratan Tata Trust (SRTT) and Sir Dorabji Tata Trust (SDTT)—currently have six trustees each (after Mehli Mistry was not reappointed).
The amendment also lays down new procedures for the appointment and reappointment of tenure-based trustees, including a five-year cap where trust deeds are silent on term limits. The move is seen by many as a reaction to Tata Trusts’ decision in October 2024, in the aftermath of the death of long-serving patriarch Ratan Tata, to turn existing trustees into perpetual/lifetime trustees.
The most immediate emerging concern now is the reappointment of Venu Srinivasan, who was appointed as a perpetual trustee on 20 October by SDTT. The trustees, sources said, were not aware of the new ordinance when the reappointment happened. Noel Tata was reappointed for life prior to the ordinance coming into effect.
While Sir Dorabji Tata Trusts operates in accordance with a deed, Sir Ratan Tata Trust operates in accordance with a Will.
Further, trustees holding fixed terms must vacate their roles once their tenure ends unless formally reappointed. In cases where the founding trust deed does not specify tenure, existing trustees may appoint replacements for terms of up to five years at a time, the ordinance says.
The move signals a potential shift in how large public trusts—including Tata Trusts, the principal shareholder of Tata Sons—may be required to structure their boards going forward.
Tata Sons, the holding company of the Tata Group, is 66% owned by Tata Trusts. SDTT and the Sir Ratan Tata Trust (SRTT) dominate, holding about 51% of Tata Sons. Tata Trusts recently renewed Venu Srinivasan term for life as trustee on the board of the Sir Dorabji Tata Trust (SDTT). The other SDTT board members include Noel Tata, Srinivasan, Vijay Singh, Pramit Jhaveri, and Darius Khambata. Mehli Mistry's term was not renewed.
Noel Tata 's term as chairman of Tata Trusts and that of SDTT was renewed for life in January, when his three-year term as a trustee ended. It was during Noel Tata's appointment as Tata Trusts chairman last year that a resolution was passed that all current terms would be for life after they are renewed.
The Maharashtra Public Trusts (Amendment) Ordinance, 2025 (Ord. 7 of 2025)—notified in September—limits perpetual trustees to one-fourth of a trust’s total board strength.
This will impede the implementation of a key resolution Tata Trusts had passed in October last year, saying trustees will be renewed for life at the end of their tenures. The new ordinance effectively will create two classes of trustees—perpetual or lifetime trustees will be one category, while tenure-term trustees will be the other. It also means trusts will have to be severely choosy about who gets to be lifetime trustees. Even to have two perpetual trustees, there will need to be eight trustees overall. The two main Tata trusts—Sir Ratan Tata Trust (SRTT) and Sir Dorabji Tata Trust (SDTT)—currently have six trustees each (after Mehli Mistry was not reappointed).
The amendment also lays down new procedures for the appointment and reappointment of tenure-based trustees, including a five-year cap where trust deeds are silent on term limits. The move is seen by many as a reaction to Tata Trusts’ decision in October 2024, in the aftermath of the death of long-serving patriarch Ratan Tata, to turn existing trustees into perpetual/lifetime trustees.
The most immediate emerging concern now is the reappointment of Venu Srinivasan, who was appointed as a perpetual trustee on 20 October by SDTT. The trustees, sources said, were not aware of the new ordinance when the reappointment happened. Noel Tata was reappointed for life prior to the ordinance coming into effect.
While Sir Dorabji Tata Trusts operates in accordance with a deed, Sir Ratan Tata Trust operates in accordance with a Will.
Further, trustees holding fixed terms must vacate their roles once their tenure ends unless formally reappointed. In cases where the founding trust deed does not specify tenure, existing trustees may appoint replacements for terms of up to five years at a time, the ordinance says.
The move signals a potential shift in how large public trusts—including Tata Trusts, the principal shareholder of Tata Sons—may be required to structure their boards going forward.
Tata Sons, the holding company of the Tata Group, is 66% owned by Tata Trusts. SDTT and the Sir Ratan Tata Trust (SRTT) dominate, holding about 51% of Tata Sons. Tata Trusts recently renewed Venu Srinivasan term for life as trustee on the board of the Sir Dorabji Tata Trust (SDTT). The other SDTT board members include Noel Tata, Srinivasan, Vijay Singh, Pramit Jhaveri, and Darius Khambata. Mehli Mistry's term was not renewed.
Noel Tata 's term as chairman of Tata Trusts and that of SDTT was renewed for life in January, when his three-year term as a trustee ended. It was during Noel Tata's appointment as Tata Trusts chairman last year that a resolution was passed that all current terms would be for life after they are renewed.
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