Vindication, Says Cyrus Mistry After Winning Back Chairman Post of Tata Sons
Mistry said today’s judgment is not a personal victory for him, but is a victory for the principles of good governance and minority shareholder rights.
File image of Cyrus Mistry. (Photo Credit: Reuters)
Hailing the National Company Law Appellate Tribunal’s decision to reinstate him as executive chairman of Tata Sons, Cyrus Mistry on Wednesday said the outcome of the appeal was vindication of the stand he took when the board of Tata Sons removed him “without warning or reason” three years ago.
“Today’s judgment is not a personal victory for me, but is a victory for the principles of good governance and minority shareholder rights,” Mistry, whose family owns 18.4 per cent stake in Tata Sons, said.
In a big win for Mistry, the NCLAT ruled that the appointment of N Chandrasekaran as the head of the holding company of salt-to-software conglomerate was illegal and has restored him as the chairman. The NCLAT however stayed the operation of the order with respect to reinstatement for four weeks to allow Tatas to appeal.
“For over fifty years, the Mistry family, as the significant minority shareholder of Tata Sons, has always endeavoured to play the role of a responsible guardian of an institution that the entire nation is proud of,” he added in a statement.
A scion of wealthy Shapoorji Pallonji family, Mistry was in a coup removed as Chairman of Tata Sons in October 2016. He was the sixth chairman of Tata Sons and had taken over in 2012 after Ratan Tata. He was later also removed as director on board of Tata Sons.
However, Mistry and Tata family patriarch Ratan Tata had reportedly falling out over key investment decisions, including manufacturing of world's cheapest car Nano.
Mistry said that as executive chairman, he always worked to establish a culture and processes that promote effective board governance to create long term stakeholder value, sustainable profits and growth.
“For the Tata Group to prosper as an institution, it is important that the management of individual companies, their Boards, the management of Tata Sons, the Board of Tata Sons and the shareholders of Tata Sons, all work harmoniously within a robust governance framework, that in substance and form, protects the rights of all stakeholders, including shareholders, investors and the Tata Groups employees, who represent the strongest asset of the Group,” his statement said.
“I believe it is now time that all of us work together for sustainable growth and development of the Tata Group, an institution that we all cherish,” he added.
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