Abhishek Manu Singhvi, the lawyer for Tata Group, has said that Ratan Tata has always acted in the interest of the group companies. “Ratan Tata has always acted in the interest of his company. It is unfortunate that dirty linen is being washed publicly,” Singhvi told CNBC TV-18. Singhvi has also said that no notice is required to change chairman if board loses confidence.
Meanwhile, after the controversial sacking of Cyrus Mistry, Tata group interim chairman Ratan Tata is likely to conduct an indepth performance evaluation across the group. According to the channel, Ratan Tata will review the group performance over a span of two months. Sources have told the channel that Ratan Tata will assess the balancesheet and management structure of the Tata group companies. A strategy is likely to be laid out for the high debt-laden companies.
Ratan Tata had on Tuesday met the group company CEOs at Bombay House. Ratan Tata assured all group companies of a stable and steady environment and told them there is no cause of concern. He even said that the selection committee will keep in mind the long-term interests of all the group companies.
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. In a sharp letter, Cyrus Mistry has blamed the directors of the conglomerate of not giving him a chance to defend himself and wrongly dismissing him. Mistry has also warned that the group may face $18 billion in write downs. Mistry has blamed five unprofitable businesses that he inherited, for the possible write downs.
Mistry has said that as the group chairman, he tried to turn things around – be it from a Nano to an ultra-mega-power plant. Mistry has hit out at Ratan Tata, his predecessor, for interference. In an e-mail letter Mistry has lamented that Ratan Tata’s interference had increased to the extent that he (Mistry) was reduced to being a ‘lame-duck’ chairman.
The Tata Sons Board has constituted a Selection Committee to choose a new Chairman. The Committee comprises Ratan N. Tata, Venu Srinivasan, Amit Chandra, Ronen Sen and Lord Kumar Bhattacharyya, as per the criteria in the Articles of Association of Tata Sons. The committee has been mandated to complete the selection process in four months.