In what could be termed as the most shocking happenings that has taken corporate think tanks in a whirlwind, Cyrus Mistry, the chairman of Tata Sons has now been shown the door and Ratan Tata has been called in as the interim chairman. Allegations and counter allegations followed.
While Shapoorji Pallonji Group, which has a stake of 18.5% in Tata Sons has challenged the unceremonious termination of Mistry and is rumoured to seek legal support. On the other hand it is understood that Tata Sons is arming itself with legal opinion and is learnt to sought the advise from former solicitor general Mohan Parasaran.
That the Tata Group has found itself in the midst of an internecine war is unfortunate especially since Mistry, the 48-year-old son of construction baron Shapoorji Pallonji, had shown himself to be far more mature than his years. Despite inheriting an unwieldy and largely unprofitable legacy — including white elephants such as Corus and Tata Teleservices, both of which were leveraged to the hilt — Mistry went about his task quietly and systematically, pruning assets and adding capacity where needed.
10.00 pm: Commenting on their appointment, Ratan Tata who took over as the Interim Chairman, said: “This is in recognition of their exemplary leadership in their companies.”
9.00 pm: It wasn’t Ratan Tata’s decision to remove #CyrusMistry, it was the decision of 6 other people: @suhelseth, Managing Director, Counselage
08.00 pm: Harish Salve says Tatas believe in salvaging institutions.
7.55 pm: TCS CEO N Chandrasekaran, Jaguar Land Rover chief Ralph Speth Join Tata Sons Board.
7.40 pm: Tata Steel, Tata Coffee, Voltas, Tata Chemicals, India Hotels, Tata Communications and Tata Global Beverages today informed stock exchanges about the replacement of Mistry yesterday with immediate effect.
7.20 pm: Tata Sons enlist Harish Salve, Abhishek Manu Singhvi’s professional help
6.40 pm: Ratan Tata is not fighting for piece of land, says adviser Harish Salve
5.50 pm: Tatas don’t want any court to pass any ex-parte orders without hearing their side of the story: PTI Sources
05.18 pm: The board meeting was attended by all eleven board members.
05.15 pm: The board meeting where the decision to remove Mistry was taken, went for less then half an hour.
05.10 pm: Cyrus Mistry writes letter to Prime Minister Narendra Modi on the ongoing issue.
05.08 pm: Cyrus Mistry denies filing any caveats in courts: Reports
04.50 pm: Tata Group and Cyrus Mistry have filed pleas against each other. ‘Caveat’ is a judicial plea to be heard.
04.22 pm: One caveat filed by Cyrus Investments Pvt Ltd against Ratan Tata and Tata Sons: PTI
04.17 pm: Three of the four caveats are filed by Mistry against Ratan Tata, Tata Sons, Sir Dorabji Trusts: PTI
04.12 pm: Tatas file caveat in SC, Bombay HC & National Company Law Tribunal to prevent Cyrus Mistry from getting ex-parte order against his sacking.
04.08 pm: Cyrus Mistry files four caveats at National Company Law Tribunal against Ratan Tata, Tata Group and Tata Trusts: PTI
4.00 pm: Ratan Tata: I am here so there is no vaccum.
3.30 pm: Tata Group files caveat in National Company Law Tribunals: Reports
2:35pm: Ratan Tata says drive must be on leadership than to follow. If there is any change, they will be discussed with group cos
2:30pm: Ratan Tata says group companies must focus on their market position vis-a-vie competition. Group companies should not compare themselves to their own past
2:25 pm: Ratan Tata assures employees that company must focus on leadership.
02:14 pm: Sources Say: Shapoorji Pallonji To Move Company Law Board; To File Case U/’Oppression Of Minority Shrhldrs’ Under Cos Act 397
01:35 pm: No change in existing CEOs of group companies
01: 15 pm: It is not an ownership issue, says Ratan Tata in first response in Cyrus Mistry row.
12:12 pm: Will ensure long term interests and working environment of group companies, says Ratan Tata to board members.
11:50 am: Tata group high level meeting ends.
11: 45 am: Group companies to hold board meetings in coming days.
11:38 am: Tata group CEOs may also be considered .
11:36 am: Noel Tata, Indira Nooyi under consideration for the post of Chairman of Tata group.
11:34 am: Tata group considering 5 contenders for the post of Chairman.
11:32 am: Cyrus Mistry to be removed as Chairman from Tata group companies.
11:31 am: Apart from Ratan Tata, Venu Srinivasan, Kumar Bhattacharya and Ronen Sen also present.
11:30 am: Tata group selection committee meeting underway.
11:01 am: Ratan Tata meets group CEOs and MDs at Bombay house.
Many industry experts have expressed deep concern over the infighting of this huge business conglomerate. Some argue that Mistry’s lack of vision have led the group to some of the worst disputes in the history of the company most notably being the case with it’s erstwhile telecom partner, Japan’s NTT Docomo, wherein Docomo moved courts over a tussle on exit clause.