Mistry is 'shock beyond words' after removal from Chairmanship

Mumbai: Cyrus P Mistry who was sacked from the post of the chairman of Tata Sons, has criticised the decision in harsh and scathing terms terming the move as ‘unparalleled in the annals of corporate history'. Mistry wrote an e-mail to the board members stating that the board proceedings were invalid and illegal and the decision has left him ‘shocked beyond words’.

“I have to say that the board of directors has not covered itself with glory. To 'replace' your chairman without so much as a word of explanation and without affording him an opportunity to defend himself...must be unique in the annals of corporate history,” the former chairman stated in the email.

Also Read: Tata Sons sacks Cyrus P Mistry as Chairman; appoints Ratan Tata

What else he said:

• I had not been allowed freedom of action to manage the affairs of the group because of changes in the articles of association of Tata Sons which had reduced the power of the chairman.
• The sudden action and lack of explanation has led to all manner of speculation and has done my and the group’s reputation immeasurable harm.
• The letter is to emphasise the total lack of corporate governance and a failure of the directors to discharge their fiduciary duty to stakeholders of Tata Sons and the group companies.

It may be mentioned that Tata Sons had alleged Mistry of lacking a corporate strategy. The former chairman asserted in his mail that he had presented the strategy 2025 to the Tata Sons board.

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Backgrounder:

• It may be recalled that Tata Sons had removed Mistry from his chairmanship and appointed Ratan Tata as the interim chairman for 4 months on Monday last.
• The decision was taken by the new selection committee including Ratan Tata, Venu Srinivasan, Amit Chandra, Ronen Sen and Lord Kumar Bhattacharyya.