In the ongoing Ratan Tata vs Cyrus Mistry battle at the venerable Tata Group, the veteran corporate said that the ousted Tata Sons chairman was given an opportunity to quit, but he chose to stay and fight and was then ejected after the relationship deteriorated further. Ratan Tata said this ahead of EGMs of six Tata group firms which have been called to remove Cyrus Mistry as director in a letter to shareholders seeking their support for a special resolution moved by Tata Sons to remove Mistry as director. Mistry became a director in various Tata group companies courtesy his status as Chairman of Tata Sons. After Mistry’s ouster, Tata wrote, “The right step would have been for him to resign as director. Unfortunately, he has not yet done so and his continued presence as a director is a serious disruptive influence on these company boards, which can make the company dysfunctional, particularly given his open hostility towards the primary promoter, Tata Sons.” Here are the highlights of what Ratan Tata said in his latest salvo against Mistry in his message to shareholders:
1. Tata Sons decided to remove Cyrus Mistry as relationship with him steadily deteriorated, attempts to remediate went unheeded: Tata
2. Mistry was offered an opportunity to step down voluntarily from the Chairman position, which he rejected: Tata
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3. Mistry’s continued presence as director is a serious disruptive influence on company boards, which can make the firm dysfunctional: Tata
4. Tata Sons removed Mistry as it lost confidence in him and his ability to lead the Tata Group: Tata
To remove Cyrus Mistry as director Tata Sons here is what has been planned: TCS has called an EGM on December 13, Indian Hotels Co Ltd on December 20, Tata Steel on December 21, Tata Motors on December 22, Tata Chemicals on December 23 and Tata Power on December 26.
(With input by agencies)