1. 5 scathing points in Tata Sons’ rebuttal to Cyrus Mistry’s letter

5 scathing points in Tata Sons’ rebuttal to Cyrus Mistry’s letter

The Tatas, making first public comments, slammed Mistry for his allegations and making the letter written to Tata board public.

By: | New Delhi | Updated: October 27, 2016 8:26 PM
Cyrus Mistry, Cyrus Mistry sacked, Cyrus Mistry regines, Cyrus Mistry TATA chairman, Cyrus Mistry news The Tatas, making first public comments, slammed Mistry for his allegations and making the letter written to Tata board public. (PTI file photo)

The Tata Sons on Thursday responded to ex-chairman Cyrus Mistry’s grave allegations leveled against the group after his removal as the chairman of the board. The Tatas, making first public comments, slammed Mistry for his allegations and making the letter written to Tata board public. The statement refuted almost all allegations made by Mistry. Here are 5 big points made in the statement by Tata Sons:

1. Full Command to Cyrus Mistry

Tata Sons refuted Mistry’s claims of being reduced to a lame-duck chairman. The statement read: “Tata Sons board gives its Chairman complete autonomy to manage opportunities and challenges.”

2. Mistry’s departure from culture and ethos

Tata Sons said that decision to remove Mistry was taken for latter’s not adhering to the culture and ethics of the company. “Tenure of the former Chairman was marked by repeated departures from the culture and ethos of the group.”

3. Why accuse after removal

Tata Sons questioned that why Mistry is leveling allegations only after his removal. Tata Sons said that while Mistry upheld the decisions and corporate governance while being  in office, he is now criticising the same. “Efforts are now being made to level accusations against individuals and company boards for ignoring corporate governance norms that were supposedly upheld by the former Chairman while in office.”

4. Mistry lost confidence of board

The statement said that Mistry lost confidence of board members due to various factors. “It is unfortunate that Mr. Mistry had overwhelmingly lost the confidence of the Members of the Board of Directors for a combination of several factors. The Directors of the Tata Sons board had repeatedly raised queries and concerns on certain business issues, and Trustees of the Tata Trusts were increasingly getting concerned with the growing trust deficit with Mr. Mistry, but these were not being addressed. The Tata Sons board, in its collective wisdom, took the decision to replace its Chairman in the manner undertaken.”

5. Tata Sons not going into a ‘public spat’ with Mistry

Tata Sons denied getting involved with Mistry in any ‘public spat’. The statement said: “It will be beneath the dignity of Tata Sons to engage in a public spat with regard to the several unfounded allegations appearing in his leaked confidential statement. These allegations are not based on facts or the true state of affairs. It is convenient to put selective information in the public domain to defend one’s point of view. There is a multitude of records to show that the allegations made by Mr. Cyrus Mistry are unwarranted and these records will be duly disclosed before appropriate forums, if and when necessary, sufficiently justifying the decision made by responsible Boards of Directors , of Tata Sons and its Group companies.”

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