Tata vs. Cyrus Mistry

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The corporate world was shaken in October 2016 when Cyrus Mistry was abruptly removed as the Chairman of Tata Sons. This story is a deep dive into the massive power struggle and legal battle that followed.
The Core Issue:
Cyrus Mistry's family was the largest minority shareholder in Tata Sons, holding about 18.4%. As Chairman, Mistry pushed for greater independence and aggressive cost-cutting measures. This vision clashed with the perspective of Ratan Tata and the Trustees who control the Tata Trusts, which hold approximately 66% of Tata Sons. This majority stake gave the Trusts ultimate power to control management decisions.
The Legal Battle:
After Mistry was removed from the Board of Directors, he took the Tata Group to court. In retaliation, the Tata Group filed a counter-case against Mistry, accusing him of mismanagement and leaking confidential information to the media.
The Supreme Court Verdict:
The long legal battle finally concluded with the Supreme Court ruling in favor of Tata Sons. The Court acknowledged that no evidence of major wrongdoing or mismanagement by Mistry was found. However, the verdict stood on a crucial legal point: as the majority shareholder, the Tata Trusts had the legal right to remove a director or chairman. The Court ruled that Mistry's removal was legally valid.

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