This is why Cyrus Mistry was removed as Chairman of Tata Sons!
In a surprise move, the Board of Tata Sons on Monday removed Cyrus Mistry as the chairman of the company, almost four years after he took over the reins from Ratan Tata.
Zee Media Bureau
New Delhi: In a surprise move, the Board of Tata Sons on Monday removed Cyrus Mistry as the chairman of the company, almost four years after he took over the reins from Ratan Tata.
Meanwhile, the board members have appointed Ratan Tata as the interim chairman for four months.
However, the decision of the board has left the corporate world in a shock with questions being raised as to why Mistry was suddenly replaced!
When Cyrus Mistry took over in 2012, he was faced with some challenging situations such as the decision to sell Tata Steel UK in the wake of mounting losses and the legal battle with Japan's DoCoMo over the split of their telecom joint venture Tata-DoCoMo.
And while there were no reasons given by the company for the change of leadership of the man who was brought in with much fanfare, it is believed that Tata Sons was unhappy with Mistry's approach of shedding non-profit businesses, including the conglomerate's steel business in Europe, and concentrating only on cash cows.
However, the replacement of Cyrus Mistry was done keeping in mind the "long-term interest" of the company, a spokesperson of the company is said to have told IANS.
"The company`s board and the principal shareholders in its collective wisdom took this decision, which they thought may be appropriate in the long term interest of Tata Sons and the Tata Group," the company spokesperson told IANS.
No changes have been made in the CEOs of the operating level of the group.
With Agency Inputs