The never ending battle inside the Tata Boardroom is going heights every day. But, this time Ratan Tata took a step forward to explain the reason behind dismissing Cyrus Mistry from the designation of chairman of TATA.
Ratan Tata stated to the shareholders on Wednesday that Tata Sons decided to remove Cyrus Mistry as the relationship with him steadily deteriorated and attempts to remediate went unheeded.
#TataSons decided to remove #CyrusMistry as relationship with him steadily deteriorated, attempts to remediate went unheeded: @RNTata2000.
— Press Trust of India (@PTI_News) December 7, 2016
In the letter to the shareholders, Ratan Tata asked for the support from everyone in taking this vital decision. He further explained that the board lost confidence in him on leading the giant conglomerate.
Earlier, the sudden decision on sacking Cyrus Mistry as the chairman of Tata on 24th October shocked the corporate sector. Though the allegations and conspiracies were uprising since the first day, they further deteriorated now.
“The right step would have been for him to resign as director. Unfortunately, he has not yet done so and his continued presence as a director is a seriously disruptive influence on these company boards, which can make the company dysfunctional, particularly given his open hostility towards the primary promoter, Tata Sons,” Tata wrote.
“As a final step, he was offered an opportunity to step down voluntarily from the Chairman position, which he rejected and said that it should be taken up at the Board,” Tata wrote further in the letter.
#Mistry was offered an opportunity to step down voluntarily from the Chairman position, which he rejected: @RNTata2000 to shareholders.
— Press Trust of India (@PTI_News) December 7, 2016
Till now, Cyrus Mistry is removed from three prominent firms, that include Tata Consultancy Services, Tata Global Beverages, and Tata Steel.
Tata Consultancy Services (TCS) first ousted him from the position of Chairman, this was done by Tata Sons group as they hold 73.26% stake out of total shares. Following this on November 15, seven out of 10 board members of Tata Global Beverages voted him out.
To remove Mistry as director, TCS has called an EGM on December 13, Indian Hotels Co Ltd on December 20, Tata Steel on December 21, Tata Motors on December 22, Tata Chemicals on December 23 and Tata Power on December 26.