Tata Group interim Chairman Ratan Tata Wednesday, in a letter to shareholders, sought support of the resolution moved in the forthcoming Extraordinary General Meeting (EGM) of the Group for the removal of Cyrus Mistry as Director. Reiterating that the Tata Sons board had “lost confidence” in Mistry and that their relationship “steadily deteriorated”, Ratan Tata wrote that his presence as a Director was a “disruptive influence”.
“…his continued presence as a Director is a serious disruptive influence on these Company Boards, which can make the company dysfunctional, particularly give his open hostility towards the primary promoter, Tata Son,” the letter states.
In light of the ongoing tussle between Mistry and Tata Sons, Ratan Tata maintained that it the group is firmly resolved to concentrate on growth by making way for new leadership. On Monday, former Tata Son Chairman, Mistry requested the Central Government to look into the corporate practices at the Group. He also asked them to take strict action against those who showed “a blatant disregard for good governance” within the trust.
“The Tata Group is no one’s personal fiefdom: it does not belong to any individual, not to the trustees of Tata Trusts, not to the Tata Sons directors, and not to the directors of the operating firms. It belongs to all the stakeholders, including every one of you,” said Mistry in his representation to the shareholders.