1. Why was Cyrus Mistry sacked by Tata Sons? Here is answer

Why was Cyrus Mistry sacked by Tata Sons? Here is answer

The counsel of former Tata Sons chairman Cyrus Mistry on Thursday told the Mumbai bench of the National Company Law Tribunal (NCLT) that he believes Mistry was ousted because he wanted to probe certain mismanagement in the company.

By: | Mumbai | Published: November 24, 2017 3:59 AM
Cyrus Mistry, Tata Sons, National Company Law Tribunal, Cyrus Investments Pvt Ltd,  Sterling Investments Co Pvt Ltd , former Tata Sons chairman mumbai Mistry’s family firms – Cyrus Investments Pvt Ltd and Sterling Investments Co Pvt Ltd – have 18.4% stake in Tata Sons. (AP)

The counsel of former Tata Sons chairman Cyrus Mistry on Thursday told the Mumbai bench of the National Company Law Tribunal (NCLT) that he believes Mistry was ousted because he wanted to probe certain mismanagement in the company. The case will now be heard from January 8-16. Arguing for Mistry’s companies, senior counsel C Aryama Sundaram told NCLT, “Various questions were arising for the past six months and just when the chairman wanted it to be looked into, he was thrown out”.  Sundaram said three months before his sacking from Tata Sons’ chairmanship, a recommendation committee had taken note of his good work in the company and then suddenly he was told to go on October 24 last year. “The resolution to remove Mistry was not even present in the agenda of the board meeting on October 24,” he said, adding that it was a clear case of oppression of a minority shareholder by majority shareholders.

Mistry’s family firms – Cyrus Investments Pvt Ltd and Sterling Investments Co Pvt Ltd – have 18.4% stake in Tata Sons. The Mumbai bench of the NCLT had on Wednesday started hearing Mistry’s plea alleging mismanagement and oppression of minority shareholders upon direction of the National Company Law Appellate Tribunal (NCLAT) in September to hear the plea on merits and decide the matter within three months.

  1. J
    Jon
    Nov 28, 2017 at 3:19 am
    The assumption here is near sighted. Mistry changed with his new power. Once he was collaberative and valued the input of senior group members and leadership. He dropped his shields and showed to everyone he was not open. He stopped consultations for input in a short time after probably 8 mos in people that thought they knew him started thinking....maybe I don't know him at all. He did not share vision... keep things tacitly did not follow through with prior promises and then people started talking about him behind his back. Also, he would make comments that were unbecoming of a Chairman about current and former leadership and BOD. Suddenly, to Cyrus everyone was daft except for Cyrus! That is why Cyrus was invited to return to his old BOD spot and quietly step down. We all have known this type of person and secretly wished they would be let go and eventually they were right?!
    Reply
    1. D
      Dr. S.K.Mandal
      Nov 24, 2017 at 11:19 am
      In Indian situation, it has always been difficult to say "King has no clothes". Hence, all board meetings of all companies say "Chairman doing a good job". But, that should not be taken on face value. All shopuld take it with a pinch of salt. Proof of the pudding is in its eating ... so has been the performance and track record of Tata Companies since removal of Mr. Mistry. Tata Companies market capitalisation has moved much higher , even more than "index" growth B value has not only regained but increased very substantially, and the contribution of the whole group has come to notice of the Nation and internationally.
      Reply

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