MUMBAI: A day after Cyrus Mistry’s explosive letter alleging ‘corporate mis-governance’ in the Tata group companies kicked up a major storm, Tata Sons on Thursday hit back saying that those allegations are ‘malicious’ and ‘unforgivable’ and would be responded to in an ‘appropriate manner’ before an ‘appropriate forum’. Taking a serious note on the manner in which communications marked confidential to Tata Sons board members were made public, Tata Sons in a strongly worded 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.”
“The correspondence makes unsubstantiated claims and malicious allegations, casting aspersions on the Tata group, the Tata Sons board and several Tata companies and some respected individuals. 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 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,” Tata Sons said.
Justifying its decision for the first time, to oust Mr Mistry from the top job, Tata Sons alleged that the tenure of former chairman was marked by repeated departures from the culture and ethos of the group. “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,” Tata Sons said without elaborating those specific issues.
On Mistry’s allegation that the articles of association were amended and his position was reduced to a ‘Lame Duck Chairman’ Tata Sons said that the former chairman was fully empowered to lead the group. Mr Mistry has been on the Board of the Company since 2006. He was appointed deputy chairman in November 2011, and formally appointed chairman of Tata Sons on December 28, 2012.
