Tata Sons, in a surprise move on October 24, said that it has replaced Cyrus Pallonji Mistry as the Chairman and named Ratan Tata as the interim Chief till they find a replacement to head India’s biggest conglomerate by revenue. 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. Meanwhile, the Board created a selection committee to appoint a new Chairman, comprising 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, younger son of Pallonji Mistry, the largest single shareholder in the Tata group’s holding company had been the director of the company since 2006. Mistry was earlier managing director of the Shapoorji Pallonji Group. Cyrus Mistry had in December 2012 become the sixth chairman of the Tata Group, replacing Ratan Tata. In the year 2010, a five-member committee was constituted to choose a new leader to the group. The people who constituted the group were: Tata Sons director RK Krishna Kumar, Lord Bhattacharya, founder of UK-based Warwick Manufacturing, Tata Sons vice-chairman Noshir A Soonawala, Tata group lawyer Shirin Bharucha and Cyrus Mistry himself.
Before the appointment, rumours were doing the rounds about three Tata group bigshots: S Ramadorai of Tata Consultancy Services, Ravi Kant of Tata Motors, and B. Muthuraman of Tata Steel. But finally, Mistry became the sixth chairman of the Tata group, after Jamsetji Nusserwanji Tata, Sir Dorab Tata, Sir Nowroji Saklatwala, JRD Tata and Ratan Tata.
Endorsing the appointment of Cyrus Mistry, Rata Tata, then Chairman of Tata Sons had said in a statement, “The appointment of Mr Cyrus P Mistry as Deputy Chairman of Tata Sons is a good and far-sighted choice.”