The surprise removal of Cyrus Mistry as the Chairman and his replacement with Ratan Tata for a 4-month period by Tata Sons has taken another turn.
The surprise removal of Cyrus Mistry as the Chairman and his replacement with Ratan Tata for a 4-month period by Tata Sons has taken another turn. After the largest shareholder in the Tata Group Shapoorji Pallonji Group, whose chief is the brother of Mistry, said that the removal was illegal, it has been revealed that he will be approaching the Bombay High Court for redressal. According to reports, the Tata Group has already consulted a number of high rofile lawyers before removing Mistry from the top Tata job, and that they have a water-tight case that will ensure the verdict goes in their favour. What may go against the group is that the decision to remove Cyrus was not unanimous – it was by majority vote. Tatas have a 9- member board.
In a shocking move, Tata Sons Board today replaced Cyrus Mistry with Ratan Tata as the interim chairman of the group. The decision was taken at a board meeting earlier in the day. Following the decision, Mistry has resigned from his post as chairman. A new selection committee has been constituted by the company to choose new Chairman. The Committee will comprise of Ratan N. Tata, Ronen Sen, Lord Kumar Bhattacharyya, Venu Srinivasan and Amit Chandra, as per the criteria in the Articles of Association of Tata Sons. The committee will complete the selection of the new chairman in four months. The move sent shock waves to India inc as there was absolutely no hint about this development from recent events.