Tata Sons hit back at Cyrus Mistry over his comments and released a statement saying that there was a multitude of records showing that the allegations made by Mistry were unwarranted. The statement further says that the allegations, that have been levelled by Cyrus Mistry were not based on facts or the true state of affairs. Tata Sons said that it gave its Chairman complete autonomy to manage all kinds of opportunities and challenge. The statement said that a communication between the Board of Directors was made public in an undignified manner. It further stated that Mistry made some “unsubstantiated” claims and “malicious” allegations against Tata Sons board and other companies and would be responded appropriately.
The statement also read that Mistry had overwhelmingly lost the confidence of all the members of the Board of Directors for a combination of several factors. It also justified the removal of Mistry and said that the board of Tata Sons, unanimously under its collective wisdom decided to replace its Chairman in the manner that he was.
Mistry, after a day of being sacked from the post of Chairman of Tata Sons, had made certain remarks on the company’s finances and a potential debt write-down of USD 18 billion. Mistry has written a scathing letter to the Tata Sons Board, blaming Ratan Tata for continuous interference, to the extent that he (Mistry) was reduced to being a “lame duck” chairman. Mistry has also blamed the directors of the conglomerate of not giving him a chance to defend himself and wrongly dismissing him.
Mistry had written a letter and said that he was shocked beyond words at the happenings of the board meeting of October 24, 2016. He accused the board of conducting business illegally and with invalidity. Earlier on Monday, Tata Sons Board had appointed Ratan Tata as the interim Chairman of the group. The Board has constituted a Selection Committee to choose a new Chairman. The Committee comprises Ratan N. Tata, Venu Srinivasan, Amit Chandra, Ronen Sen and Lord Kumar Bhattacharyya, as per the criteria in the Articles of Association of Tata Sons. The committee has been mandated to complete the selection process in four months.