Cyrus Mistry says not interested in chairmanship at Tata Sons
06 Jan 2020
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The man who fought for justice after getting unceremoniously ousted from the top of the country’s biggest industrial conglomerate, Cyrus Mistry says he will not seek executive chairmanship of Tata Sons again.
In a public statement issued on Sunday, he said the NCLT order has only humbled him and that he does not intend to pursue executive chairmanship of Tata Sons.
Mistry said his focus has always been on upholding best standards in corporate governance – that the interests of the Tata group are far more important than interests of any individual or me.
“To dispel the misinformation campaign being conducted, I intend to make it clear that despite the 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," said Cyrus Mistry.
Mistry’s statement comes a day ahead of the Supreme Court hearing, in which Tata Sons’ Chairman Emeritus Ratan Tata challenged the National Company Law Tribunal's (NCLAT) verdict reinstating Cyrus Mistry as Tata Sons’chairman.
While the Tata Group is pursuing its case against NCALT order, Mistry’s statement has helped put at rest the rumours about the future leadership of Tata Sons Ltd and Tata group companies.
Mistry, however, said he will seek a board seat, for improving governance standards at Tata Sons.
The National Company Law Appellate Tribunal (NCLAT), on 18 December, issued an order reinstating ousted chairman Cyrus Mistry and holding the appointment of N Chandrasekaran as his successor illegal. The appeals court also held the change of status of the company from a public company to a private one as void.
The NCLAT had reinstated Mistry’s directorship in three group companies – Tata Consultancy Services, Tata Teleservices (Maharashtra) and Tata Industries Ltd – for the remainder of his tenure, which was just about five months.
NCLAT had cited haste in removal of Mistry as chairman of the Tata group’s holding company, ignoring the interest and oppression of minority shareholders, and mismanagement at Tata Sons as reasons for the ruling.
Tata Sons moved a petition in the apex court on 2 December citing that the ruling was untenable in law and violated set principles of Company Law. The Supreme Court is set to hear the plea today (6 January) as it reopens after winter vacation.
Mistry was removed as chairman of Tata Sons on 24 October 2016, five months before his tenure was to end. This triggered a three-year long corporate and legal battle between the Mistry firms and majority shareholders of Tata Sons.
Mistry’s family firms - Cyrus Investments Pvt Ltd and Sterling Investments Pvt Ltd - which own 18.4 per cent of ordinary shares in Tata Sons, moved the National Company Law Tribunal in December 2016 alleging oppression of minority shareholders and mismanagement.
