Sources close to sacked Tata Steel chairman Cyrus Mistry have attributed his abrupt October 24 removal as head of Tata Sons – the holding company of the over USD 100 billion salt-to-software group, to a combination of several factors, as reported by news agency PTI. The sources, according to PTI, said said the removal was “absolutely necessary for the future success of the Tata Group”. They added that “unprecedented erosion of core values is damaging the Tata brand”.
Earlier in the day Mistry was removed as the chairman of Tata Steel. Independent Director O P Bhat was appointed in his place. The board also decided to convene an Extraordinary General Meeting (EGM) to remove Mistry and independent director Nusli Wadia as directors on the board of the company. The EGM will be held on December 21.
This follows the recent development of Tata Sons asking the Indian Hotels Co Ltd – the firm that runs Taj Group of Hotels, to remove Cyrus P Mistry as director of the company. The group made the call asking Mistry to step down saying that after being removed as Chairman of Tata Sons he had “made certain unsubstantiated allegations, which cast aspersions not only on Tata Sons Ltd and its board of directors, but also on the Tata Group as a whole, of which IHCL is an integral part”. The Ratan Tata-led interim management of Tata Sons is seeking to oust Mistry from his positions in the operating group firms.
(With inputs from PTI)