close
This ad will auto close in 10 seconds

Ratan Tata reveals why Tata Sons removed Cyrus Mistry as chairman

In a letter to shareholders on Wednesday, Ratan Tata said Tata Sons decided to remove Cyrus Mistry as relationship with him steadily deteriorated and attempts to remediate went unheeded.


Ratan Tata reveals why Tata Sons removed Cyrus Mistry as chairman

New Delhi: As the boardroom battle between Tatas and Cyrus Mistry continue to grow, interim boss of Tata Sons, Ratan Tata on Wednesday revealed by the company decided to removed Mistry as the chairman of the firm.

In a letter to shareholders on Wednesday, Ratan Tata said Tata Sons decided to remove Cyrus Mistry as relationship with him steadily deteriorated and attempts to remediate went unheeded.

In the letter to the shareholders seeking their support to the special resolution moved by Tata Sons to remove Mistry as director, Tata said Mistry was removed as the Chairman as Tata Sons board lost confidence in him and his ability to lead the conglomerate.

In one of the most sudden and bizarre news that shocked the corporate world, Tata Sons sacked Cyrus Mistry as its chairman on October 24 and appointed Chairman Emeritus Ratan Tata as the interim boss.

Since then, the battle between the two has been of allegations and accusations.

Tata said Mistry was appointed as a director of various Tata group companies only as a corollary to his being the Chairman of Tata Sons.

"The right step would have been for him to resign as director. Unfortunately, he has not yet done so and his continued presence as a director is a serious disruptive influence on these company boards, which can make the company dysfunctional, particularly given his open hostility towards the primary promoter, Tata Sons," Tata wrote.

"As a final step he was offered an opportunity to step down voluntarily from the Chairman position, which he rejected and said that it should be taken up at the Board," Tata wrote further in the letter.

So far, Mistry has been removed as the chairman of three firms, namely, Tata Consultancy Services, Tata Global Beverages and Tata Steel.

First Tata Consultancy Services (TCS) removed him as chairman but that ouster was not through a vote but by virtue of Tata Sons holding a commanding 73.26 percent stake in the India's largest software services firm.

Then on November 15, seven out of 10 board members of Tata Global Beverages voted him out.

To remove Mistry as director, TCS has called an EGM on December 13, Indian Hotels Co Ltd on December 20, Tata Steel on December 21, Tata Motors on December 22, Tata Chemicals on December 23 and Tata Power on December 26.

 

From Zee News

0 Comment - Join the Discussions

trending

photo gallery

video