NE BUSINESS BUREAU
MUMBAI, JAN 6
Cyrus Mistry, who was reinstated as chairman of Tata Sons and director of TCS, Tata Teleservices and Tata Industries by the National Company Law Appellate Tribunal (NCLAT), said that he was not interested in returning to these positions.
“To dispel the misinformation campaign being conducted, I intend to make it clear that despite the (December 18, 2019) NCLAT order in my favour, I will not be pursuing the executive chairmanship of Tata Sons, or directorship of TCS, Tata Teleservices or Tata Industries,” he said in a statement here on Sunday.
The scion of the Shapoorji Pallonji (SP) family added that he will, however, “vigorously pursue all options to protect [his] family’s rights as a minority shareholder, including that of resuming the 30-year history of a board position in Tata Sons and the incorporation of the highest standards of corporate governance and transparency at the company”.
Fight is about protecting rights of minority shareholders: Mistry
The family, with an 18.4% stake in Tata Sons, has been a shareholder of the company since 1965 and was invited to its board in 1980.
Ratan Tata, chairman emeritus of Tata Sons and Tata Trusts (controlling shareholder of Tata Sons), among others, last week moved the Supreme Court challenging the NCLAT order, stating that restoring Mistry to his original positions to complete his tenures that had expired, would go against the interest of shareholders and create confusion in the working of the companies. Mistry said he took the decision (not to pursue chairmanship at Tata Sons and directorship at three other Tata entities) as the “interests of Tata Group are far more important than the interest of any individual”.
This puts to rest the speculation regarding the uncertainty over the future leadership at Tata Sons. Apart from reinstating Mistry as the chairman of Tata Sons, a position he held for nearly four years until October 24, 2016, when he was hastily removed in a boardroom coup, the NCLAT held the appointment of his successor N. Chandrasekaran as illegal.
“This legal fight has never been about me. It has always been and will always be about protecting the rights of minority shareholders and upholding their right to demand a higher standard of corporate governance from controlling shareholders,” Mistry said in a statement.
