Leading Indian ad film director, Prahlad Kakkar has said that recently replaced Cyrus Mistry was not successful as Tata Group Chairman, in doing damage control as expected. In an interview with Times Now, Kakkar said, “Cyrus Mistry’s exit will shake up a lot of people in the market.” In one of the most surprising news in the corporate sector, the Tata Group decided to appoint Ratan Tata as the interim chairman of the group, which replacing Cyrus Mistry. A Board meeting held today came to the conclusion and lead to the resignation of Mistry. Ratan Tata will act as the interim Chairman in the mean time.
The Board also created a selection committee to appoint a new Chairman of Tata Group, which comprises of Ratan N. Tata himself, Ronen Sen , Venu Srinivasan, Amit Chandra and Lord Kumar Bhattacharyya, in accordance with the criteria in the Articles of Association of Tata Sons. The committee has been asked to select the new Chairman in four months. Cyrus Mistry had in December 2012 become the sixth chairman of the Tata Group, replacing Ratan Tata. Mistry had been the director of the company since 2006. Mistry was earlier managing director of the Shapoorji Pallonji Group.
According to reports, the replacement of Cyrus Mistry is a ‘performance-based’ decision. A CNBC report said that Tata Sons decided to remove Cyrus Mistry as the chairman in the “larger interest of the group”. Reports that over the past 6 months, serious differences had emerged between Ratan Tata and Cyrus Mistry, have also been doing the rounds, ever since the appointment. Various reports suggest that Tata Sons Board took the decision on “collective wisdom” to replace Cyrus Mistry. It appears that the principal shareholders felt it may be appropriate to change leadership.