Cyrus Mistry resigns from 6 listed Tata companies
Just days before Tata Sons' Extraordinary General Meeting (EGM), ex-Chairman Cyrus Mistry today resigned from six listed Tata group companies including Tata Chemicals , Indian Hotels , Tata Steel and Tata Motors with immediate effect.
Mistry was ousted from the Chairmanship of Tata Sons on October 24. Addressing stakeholders via a video call, Mistry said through this step he means to move away from the EGM process and shift the battle to a 'larger platform where rule of law and equity is upheld’.
Stressing on his struggle amid serious governance problems for a considerable period, he alleged his efforts, aimed at reforming the system from within, may be the real reason for his removal. Commenting on Mistry's sudden move, HP Ranina, a Corporate Tax lawyer told CNBC-TV18 Mistry seems to be only taking one step backward to be able to take two steps forward later.
Mistry knows there is no point in going ahead with the extraordinary general meetings as voting is going to go against him. "This comedy show has to stop. Cyrus Mistry has no support," says Mohandas Pai of Manipal Global. The case may now be heading to the government and the regulators as Mistry tries to make sure that Independent Directors are protected and cannot be removed for no substantial reason, says Ranina.
Source: Moneycontrol
Mistry was ousted from the Chairmanship of Tata Sons on October 24. Addressing stakeholders via a video call, Mistry said through this step he means to move away from the EGM process and shift the battle to a 'larger platform where rule of law and equity is upheld’.
Stressing on his struggle amid serious governance problems for a considerable period, he alleged his efforts, aimed at reforming the system from within, may be the real reason for his removal. Commenting on Mistry's sudden move, HP Ranina, a Corporate Tax lawyer told CNBC-TV18 Mistry seems to be only taking one step backward to be able to take two steps forward later.
Mistry knows there is no point in going ahead with the extraordinary general meetings as voting is going to go against him. "This comedy show has to stop. Cyrus Mistry has no support," says Mohandas Pai of Manipal Global. The case may now be heading to the government and the regulators as Mistry tries to make sure that Independent Directors are protected and cannot be removed for no substantial reason, says Ranina.
Source: Moneycontrol
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