Tata Cyrus Mistry Case: A Complete Story

Описание: Mistry, who was the sixth chairman of Tata Sons, was ousted from the position in October 2016. He had taken over as the chairman in 2012 after Ratan Tata announced his retirement. Tata Group patriarch Ratan Tata had personally asked Cyrus P Mistry to resign as chairman of Tata Sons as the board had lost faith in him, but his refusal led to the removal via majority vote.
After this decision, there was a lot of uproar in the corporate world and many questions were raised which angle is right and who is wrong.
Let's understand this whole story
On 24 Oct 2016 had personally asked Cyrus P Mistry to resign as chairman of Tata Sons as the board had lost faith in him, but he refused. After that, the Board meeting held on the same day and decided to remove Mistry from Chairman post. Seven out of the nine directors of Tata Sons voted for his replacement after Farida Khambata abstained and Mistry was declared ineligible to vote as he was an interest director.
Stating that the decision was not taken suddenly or in haste, it said the removal "was the result of a chain of events that led to a growing trust and confidence deficit that had to be addressed without delay".
Mistry challenged his removal, accusing the board of mismanagement and of oppressing minority shareholders. however, India’s National Company Law Tribunal rejected his petition. After this Mistry challenged his removal in NCLAT. In 2018 NCLAT order restored Mistry as the group's executive chairman. Tata Sons have challenged that NCLAT order in Supreme Court. Furthur supreme court stayed last month’s NCLAT order reinstating Cyrus Mistry as the executive chairman of Tata Sons and restoring his directorships in the holding company as well as three group companies, with a preliminary observation that the first impression of the order was “not good” and that the tribunal ‘could’ not have given consequential relief that had not been sought in the first place.
The NCLAT order, dated December 18, 2019, had also set aside Tata Son’s decision to convert itself into a private company. The Supreme Court decision will, for the time being, end the uncertainty that had engulfed one of India’s most storied business groups after the NCLAT order. TCS, a key group company, had postponed its board meeting that was scheduled to take place on January 9.
Mistry had, through a statement issued on Sunday, withdrawn his claim to the chairmanship of Tata Sons but had said he would vigorously press for his board seat.