Ratan Tata Cyrus Mistry row: Cyrus Mistry has finally resigned from the Tata companies namely Tata Motors, Tata Steel, Tata Chemicals and Indian Hotels after the eight-week long boardroom tussle. Apparently, Cyrus Mistry was ousted from the Tata Group in an ‘illegal coup’.
“In the past eight weeks, I saw a lot of coercive action from the Tatas towards shareholders, debt holders and employees, which is making all the three uncomfortable. In various representations to shareholders, I had said it was not about me or about my position. My resignation proves that”, Cyrus Mistry said in an interview.
Ratan Tata Cyrus Mistry row
Recently, a three-page long statement was issued by Mistry explaining his version of the ‘illegal coup’. In the statement he wrote, “In order to be more effective, serve the objective of governance reform, and to regain lost ethical ground, I have decided to shift…where the rule of law and equity is upheld. It is now clear that my attempt to protect and preserve the ethical legacy of our founding father, Jamsetji Tata, was the real cause for my ouster.”
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“The pursuit of good governance and ethical business seem to have caused a serious discomfort in some quarters. I have been attempting to resolve the governance break-down at Tata Sons for a considerable period of time. Mr Ratan Tata and Mr Noshir Soonawala, Trustees of Tata Trusts, who had retired from Tata Sons after multiple extensions, have refused to give up participation in key decisions involving Tata Sons and the operating companies, including those listed in India and abroad.”
He further clarified that he had tabled the forensic report that contained the record of fraud and wrong-doing on which the discussion never happened. Furthermore, he alleged Ratan Tata of keeping mum on his ouster from the Tata Group for which he has been asking for an explanation but none has come from Tata as yet.
“these ethical issues can have a short-term adverse impact on the Tata Group. However, I feel strongly that such short-term pain is necessary for the long-term interests of employees, public shareholders and other stakeholders of the Tata Group. As a large shareholder of Tata Sons and a proud long-term partner, my family will also equally suffer this pain. The time has to come to take matters to their logical conclusion. I will work on protecting the interests of the Tata Group and realising the vision of our Founder, Jamsetji Tata, until my last breath.”
Mistry said that this is not his personal battle and it is not about the position either, which is well proved by his resignation.