Ratan Tata assures CEOs of stability, continuity
25 October 2016
A day after Cyrus Mistry was ousted as chairman of Tata Group, Ratan Tata today assured all group CEOs of a stable enviroment at the conglomerate. He also said that group companies will see continuity in their strategies and assured them that Cryus Mistry's exit is not a cause of concern for the Tata Group.
Tata addressed concerns that CEOs have raised regarding possible changes and assured them that long term interests of group will get priority, according to CNBC-TV18.
Meanwhile, some reports also said that the Tata group has filed caveats in the Supreme Court, Bombay HC and the National Company Law Tribunal (NCLT) to prevent Cyrus Mistry from getting ex-parte order against his sacking.
Shapoorji Pallonji, the single largest shareholder with 18.4 per cent stake in the holding company Tata Sons, today said it is studying the "circumstances" and has not yet decided on taking legal recourse.
Shapoorji said it will make a statement on the course of action it chooses when such a thing becomes necessary.
Media reports, however, said Shapoorji Pallonji Group will file a case under the ''oppression of minority shareholders and mismanagement'' Section of Companies Act 397.
Ratan Tata, who took over as interim chairman of the group, has asked group heads to go about business as usual. Company leaders should focus on running their respective businesses and not be distracted by the change in overall leadership at the conglomerate.
In a statement addressed to business heads that was released to media and talked about ongoing initiatives at the group companies, Tata said: "We will evaluate and continue to undertake those that are required to. If there is any change, they will be discussed with you."
Ratan Tata also asserted that Cyrus Mistry's ouster has nothing to do with ownership.
Ratan Tata said that he had assumed the role of the interim chairman for stability and continuity so that there is no vacuum. "This will be for a short time. A new permanent leadership will be in place," he said.
"Neither the SP Group nor Mr Cyrus Mistry have made any statement yet. While the circumstances are being studied, there is no basis to media speculation about litigation at this stage. As and when a public statement becomes necessary, it would be made," another media report quoted the construction group as saying in an emailed statement.
In an apparent statement to Tata Group employees Cyrus Mistry has denied reports of him suing Tata Sons for his sudden dismissal from the group.
"Events of the past 24 hours obviously involve an element of sensitivity if not surprise. They need time for being assessed. As and when a public statement becomes necessary, it would be made."
"Neither the SP Group nor Mr Cyrus Mistry has made any statement yet. While the circumstances are being studied, there is no basis to media speculation about litigation at this stage," media reports quoted Mistry as saying.
Shares in Tata Group companies dropped on Tuesday morning after the board ousted Cyrus Mistry as chairman late on Monday. At 10 AM, shares in Tata Consultancy Services were down 0.7 per cent, Tata Motors dipped 0.5 per cent, Tata Steel slid 2.5 per cent and Tata Power fell 1.8 per cent, while Indian Hotels Co Ltd dropped 2 per cent.