Independent directors of Tata Motors on Monday said they supported the company’s management with the statement put out by them making no specific reference to Cyrus Mistry. The long-drawn-out board meeting, which also reviewed the results for the September quarter, is understood to have been a heated one with directors putting forth diverse views. Sources said director Nusli Wadia’s suggestion to highlight Mistry’s efforts was turned down by the others.
In contrast, Mistry had found more vocal support from independent directors of both Indian Hotels Company (IHCL) and Tata Chemicals, who had applauded his efforts and performance.
The independent directors on the Tata Motors board include Nasser Munjee, Falguni Nayyar, Nusli Wadia, RA Mashelkar, Subodh Bhargava and Vinesh K Jairath. The statement from the independent direc- tors of Tata Motors said they “have further affirmed that the Company continues to be governed, supervised and managed under the guidance and direction of the Board”.
“The management of the company and its subsidiaries have the full confidence and support of the independent directors,” the release read.
All decisions taken by the board “with regard to the strategy, operations, and the business of the company have been unanimous and executed by the Chairman and the management accordingly” the statement said.
Mistry, non-executive director and chairman of Tata Motors, was removed as chairman of Tata Sons on October 24 and is fighting to retain his position as director and chairman on a host of Tata group companies.
Tata Sons, however, appears determined to have Mistry out of the companies and has asked Tata Steel, IHCL, Tata Motors and Tata Chemicals to call for extraordinary general meetings. Mistry was replaced by Ishaat Hussain as chairman of Tata Consultancy Services without a board meeting having been called.
Last Friday, three independent directors of Tata Steel — led by Wadia — are believed to have spoken up in support of Mistry. However, the other directors were not convinced about supporting Mistry and and pointed out it might not be in the interest of the company to do so. Tata Sons also wants Wadia, chairman of Bombay Dyeing and a long-time ally of the Tatas, out of the boards of Tata Chemicals, Tata Steel and Tata Motors.