Ousted chairman of Tata Sons Cyrus Mistry’s office on Tuesday issued a statement saying Mistry’s fight is to protect the Tata Group from capricious decision-making by the Interim Chairman. The statement read, “Individuals prone to impulsive control have exposed the Tata Group to perilous violation of regulatory requirements. They are seeking to procure unpublished price sensitive information from listed Tata Group cos, breaking down governance.”
“Mistry’s family holds over 18 per cent interest in Tata Sons. If he were to indeed seek to make Tata Group companies break away from Tata Sons, he would have been hurting his own family’s financial interests,” the statement added. It further said: “This has the potential to hurt shareholders values… Never before has the Tata Group, including the philanthropic objectives of the Tata Trusts been in jeopardy to this extent and scale.”
This development comes after Cyrus Mistry had on Monday suggested that the government should look into the governance structure at Tata Trusts and take action against people who have shown “a blatant disregard for good governance” within the trust. In a 14-page representation to the shareholders of six Tata Group firms ahead of their extraordinary general meetings (EGMs) to decide his fate, Mistry said that the governance charter across the Tata Group needs to be repaired and Tata Trusts needs to become “accountable and transparent”.
(With ENS inputs)