Tata Sons’ Extraordinary General Metting came to an end on Monday. The EGM had been called to oust Cyrus Mistry from the post of Chairman. The EGM passed a resolution with the requisite majority to remove Cyrus Mistry as a Director of Tata Sons. The sacking of Cyrus Mistry came after four years of him at the helm of the Tata Sons. Ratan Tata, whom Mistry had replaced on December 29, 2012, held the interim chairman post four months. Although no initial reasons were given for Mistry’s removal, it was reported that Tata Sons was unhappy with Mistry’s approach of shedding non-profit business and concentrating only on cash cows.
Earlier the company had also accused Mistry of confidentiality breach and had promised legal actions against him. Mistry had reportedly filed a petition seeking the intervention of the National Companies Law Tribunal, accusing the conglomerate of shareholder oppression and mismanagement. Tata Sons, in a two-page legal notice from its law firm on Tuesday seen by Reuters, had alleged that Mistry had “deliberately” attached confidential information related to the company to his petition, even without “any requirement to do so.”
Earlier on January 12, Natarajan Chandrasekaran, former CEO of TCS, had been appointed as the executive chairman of Tata Sons, the holding company of Tata group. The decision to select Chandrasekaran as the executive chairman was taken unanimously during a meeting of the Board of directors of Tata Sons. Chandrasekaran was also one of the members of the board. In a statement, the Board of Tata Sons had said: “Mr Chandrasekaran has demonstrated exemplary leadership as the Chief Executive Officer and Managing Director of Tata Consultancy Services. We believe he will now inspire the entire Tata group to realise its potential acting as leaders in their respective businesses, always in keeping with our value system and ethics and adhering to the practices of the Tata group which have stood it in good stead.”