In another turn of events in the Tata-Mistry clash, it was reported that Cyrus Mistry is to remain as the Chairman of Tata Steel. The company’s board did not raise the issue of Cyrus Mistry’s position as Chairman of Tata Steel, television channels ET Now and CNBC TV18 reported on Friday, citing sources. This comes only a day after the board meeting of Tata Chemicals concluded in Mumbai, which did not see any of its board members raise an issue with Cyrus Mistry being the Chairman of the company.
Earlier today, Tata Motors said that the Tata Sons had called for a general meeting to sack two of its directors; Cyrus Mistry and Nusli Wadia. Wadia is the grandson of JRD Tata and a close ally but was found to be working with Mistry alongside. Wadia had led the Tata Chemicals Directors meeting on Thursday that supported Mistry being the Chairman of the Tata Group. The Tata Sons board had earlier sacked Cyrus Mistry from his post of Chairman on October which had started an ugly public clash between both the parties.
Wadia is the Chairman of Bombay Dyeing and Britannia industries and an independent director of Tata Chemicals for a long time and was considered a religious supporter of Ratan Tata. Wadia, who is no stranger to corporate warfare, met with Naseer Munje and 2 other independent directors for 4 hours to discuss the leadership capabilities of Cyrus Mistry. They had come to a conclusion that Mistry, in the last 4 years has performed his job and taken all decisions as per the instructions of the Tata board.
One of the independent directors involved in the Tata chemicals board meeting told ToI that they had reviewed Mistry’s performance and couldn’t find any difference from the last time they had evaluated him. The current rules of the Tata Group demand that the independent directors of a company should meet at least once a year to evaluate the performance of all non-independent directors, including the Chairman.
However, there is no official communication from Tata Sons or Tata Steel board.