Voice from the Rooftop

Blog of Vincent Augustine D'Souza

Return of Ratan Tata

On 24/10/2016 Tata Sons Board removed Cyrus Mistry as Chairman and replaced him with Ratan Tata as Interim Chairman. This was a surprise.
Ratan Tata is 78. He had retired in 2012. Cyrus Mistry is 48. He was 44 when he became Chairman. Mistry’s election in 2011 was a surprise. He was in the committee to select a successor to Ratan Tata. The committee elected him. Now Tata Sons has formed a selection committee to find a permanent Chairman. The committee comprises Ratan Tata, Venu Srinivasan, Amit Chandra, Ronen Sen and Sushanta Kumar Bhattacharyya.
There have been various reactions to Mistry’s removal. What happened to Cyrus is a Mistry. Surgical strike at Tata Sons. Tata group Shows Cyrus Mistry the door. Cyrus Mistry removed as Tata Sons chief, Ratan Tata is interim chairman. Cyrus Mistry sacked in Tata Sons churn. Tata Sons is the new Samajwadi Party. Tata Sons unexpectedly removes Cyrus Mistry as Chairman. Tata Sons in turmoil after Chairman’s bizarre ousting.
Tata Trusts own majority of shares of Tata Sons. Around 66%. Mistry family owns around 20% of shares of Tata Sons. Ratan Tata controls Tata Trusts. The Tata camp is said to have obtained legal opinion of former Solicitor General Mohan Parasaran about removing Mistry. Mistry is said to have been told about Tata Trusts being unhappy about him and he insisted on Board vote. Mistry may move court against his removal.
Tata companies have faced challenges and many have suffered losses. There is arbitration with NTT Docomo. Ratan Tata is said to have been unhappy with the decisions Mistry took regarding Indian Hotels, Corus, and Tata Chemicals.
It will be interesting to see who will be Chairman of Tata Sons. How long Ratan Tata will be Interim Chairman? It may be more than four months.

Updated: October 25, 2016 — 9:27 am

2 Comments

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  1. Interesting… Thanks for sharing.

  2. Good information.

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