Cyrus Mistry removed as director of Tata Industries at the shareholders’ meet
On Monday morning, Cyrus Mistry removed as a director of Tata Industries in a vote at an extraordinary general meeting called specifically to remove him, according to reports. Notably, Cyrus Mistry was sacked as Tata sons chairman earlier this year, but now the group is planning to remove him from other positions he holds in its various companies.
On Sunday Ratan Tata had alleged that Mistry misled the selection committee to become the chairman of Tata Sons on which Mistry’s office stated that Ratan Tata had been repeating the same lie a thousand times and hoping it to become a truth.
According to reports, six Tata group companies have called the extraordinary general meeting to remove Cyrus Mistry as Tata sons interim chairman Ratan Tata had last week appealed to shareholders to help him in this effort. In a letter he told them that Mr. Mistry’s continued presence in boards of Tata firms is a serious disruptive influence and can make the companies dysfunctional.
Mr. Mistry had joined Tata Sons in 2006 and was appointed chairman in December 2012.
Here are few highlights
- Ratan Tata said the deliberated action to remove Cyrus Mistry was taken after the relationship with him steadily deteriorated
- Cryus Mistry too has written to shareholder, accusing Ratan Tata of undermining reforms. He further added that group companies fared better in his four – year tenure as chairman
- Ratan Tata in the letter that Cyrus Mistry has been removed as chairman of the group because Tata Sons’ lost its confidence in him and his ability to lead the group
- Tata also wrote that the right step would have been for Cyrus was to resign as a director, but since has not done it. It is important to remove him otherwise company can become dysfunctional.