Over on-going controversies relating the replacement of Cyrus Mistri as the chairman of the Tata Sons group with Ratan Tata, Rajiv Kumar, senior fellow for Policy Research today claimed that the ‘way in which Mistry was removed is not the sign of good corporate governance. Being doubtful about whether Mistry’s image will be ‘damaged as expected due to this public spat’, Kumar said Tatas have ‘put themselves in compromising position by removing Cyrus in such a way.’
In a statement to ETNow, Rajiv Kumar said, “Cyrus’ allegations may provoke Tatas to to be a transparent & good governance company.”
Rajiv Kumar claimed that the ousted chairman might have had his own plan of restructuring loss making companies and the Tatas cannot blame Mistry for lack of performances.
In an article published in ETNow, Kumar wrote, “Mistry genuinely felt that he was not up to the job of shepherding a sprawling conglomerate whose expanse across sectors and geographies defies all attempt at finding an organisational or operational coherence.”
On 24th September, the Tatas replaced Cyrus Mistry from the position of the chairman of the Tata Sons group and appointed Ratan Tata as the new chairman. With raising criticism in the corporate structure on the way Mistry was replaced, days later the ousted chairman hit back at the Tatas, in a letter which mentioned series of allegations against the Tata Group and Ratan Tata including those relating to fraudulent transactions, unethical practices and conflict of interest.