Cyrus Mistry resigns from all the six listed Tata Group companies as the ex-chairman of Tata Sons prepares for courtroom battle
In an unexpected move, Tata Sons’ ousted chairman Cyrus Mistry has resigned from all the listed companies of Tata Group. The move comes after three Tata companies voted him out. Tata has convened shareholder meetings of give group companies to vote for Mistry’s removal from their respective boards.
Despite being ousted from the Tata Sons chairman post eight weeks ago, Cyrus Mistry indicated he won’t leave the positions in the group companies. But this move comes really unexpected as he has started preparing for legal battle. In a statement Mistry has said that he will shift this campaign to a larger platform where rule of law and equity is upheld. As it seems, this is going to be a long drawn legal battle between him and Tata Group.
Despite being at the centre of controversy, Tata group has not yet given any concrete reason behind the sudden ousting of Mistry from his post of chairman from the Tata Sons. Interestingly, Ratan Tata came out immediately from retirement after Mistry’s removal and took charge as interim chairman. After the incident, Mistry termed the decision as an illegal coup.
In a statement he told, it was now clear that his attempt to protect and preserve the ethical legacy of the group’s founding father Jamsetji Tata was the real cause for his ouster. He also alleged that good governance and ethical business have caused a serious discomfort in some quarters among the group.
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Interestingly, Cyrus’ family owns an 18.4% stake in the Tata conglomerate. His family has held the Tata Sons shares for nearly five decades. Also, they had been a passive investor until Cyrus Mistry was selected as Ratan Tata’s successor in the group in 2012.