Wrap-up: The boardroom battle

There is an element of surprise and shock in cyrus mistry's exit.

Hitting out at Cyrus Mistry for making ‘unsubstantiated claims and malicious allegations’, Tata Sons on Friday said the former chairman was fully empowered to lead the group and its companies but had “overwhelmingly” lost the confidence of board members.

With the contents of Mistry’s letter, which he wrote to its Board members after being sacked, becoming public, Tata Sons regretted that “a communication marked confidential to Tata Sons board members has been made public in an unseemly and undignified manner”. The promoter company of the major Tata group companies also alleged that Mistry’s tenure was marked by repeated departures from the culture and ethos of the group. “The correspondence ma-kes unsubstantiated claims and malicious allegations, casting aspersions on the Tata group, the Tata Sons board and several Tata group companies and some respected individuals. These will be responded to in an appropriate manner,” Tata Sons said in a statement.

The company also rubbished Mistry’s claims that he was made a ‘lame duck’ Chairman.

“As the Executive Chair-man, he was fully empowered to lead the group and its companies. It is unfortunate that it is only on his removal that allegations and misrepresentation of facts are being made about business decisions that the former Chairman was party to for over a decade in different capacities,” the statement said.

The Tata Sons board gives its Chairman complete autonomy to manage opportunities and challenges. However, the tenu-re of the former Chairman was marked by repeated departures from the culture and ethos of the group, it added. “It is unfortunate that Mr. Mistry had lost the confidence of the Members of the Board of Directors for a combination of several factors,” Tata Son said.

Stating that Mistry has been on the Board of the company since 2006 and was appointed deputy chairman in 2011 and formally appointed Chairman on December 28, 2012, Tata Sons said he would be fully familiar with the culture, ethos, governance structure, financial and operational imperatives of the group as well as its various companies.

( Source : Deccan Chronicle. )
Next Story