Updated: December 18, 2019 6:45:59 pm
The National Company Law Appellate Tribunal (NCLAT) Wednesday restored Cyrus Mistry as executive chairman of Tata Sons. The tribunal also ruled that appointment of N Chandrasekaran as the head of the holding company of salt-to-software conglomerate was illegal. The NCLAT, however, stayed the operation of the order with respect to reinstatement for four weeks to allow Tatas to appeal.
From the sacking of Mistry, the scion of wealthy Shapoorji Pallonji family, to NCLAT restoring him as Executive Chairman of Tata Group, here’s a brief timeline:
October 24, 2016: Tata Sons remove Cyrus Mistry as its Chairman, nearly four years after he took over the reins of the over USD 100 billion salt-to-software conglomerate. The decision was taken at a Board meeting held in Mumbai. Ratan Tata was appointed as interim chairman. Tata Sons also disbanded the group executive council.
October 25, 2016: Mistry, in a letter to the Tata Sons board, warns of an $18 billion write-down and alleges ‘shadow control’ by Tata trustees.
November 5, 2016: Tata group’s listed companies start announcing extraordinary general meetings (EGMs) to remove Mistry as chairman.
November 10, 2016: Tata Sons replaces Mistry as chairman of Tata Consultancy Services with Ishaat Hussain as interim chairman.
November 14, 2016: Independent directors at Tata Motors refuse to take sides, saying the automaker’s board was collectively responsible for all decisions relating to strategy and operations.
December 16, 2016: Nusli Wadia, Wadia group chairman who was removed as an independent director from the boards of Tata Motors and Tata Steel, files a defamation suit against Tata Sons and Ratan Tata, calling the allegations levelled against him libelous and defamatory.
December 19, 2016: Mistry resigns as director from all Tata group companies.
December 20, 2016: Mistry family firms file a case against Tata Sons at the National Company Law Tribunal (NCLT), alleging oppression of minority shareholders and mismanagement.
December 27, 2016: Wadia writes to the Securities and Exchange Board of India (Sebi) alleging a violation of insider trading norms at Tata Sons.
January 11, 2017: Mistry firms file contempt plea in NCLT, stating that Mistry’s removal from the board violates a 22 December 2016 order by the tribunal which said that no party would initiate any action or proceedings over the subject matter pending disposal of the company petition.
January 12, 2017: Tata Sons names N Chandrashekaran as Chairman.
February 6, 2017: Mistry removed from the post of director of Tata Sons’ board.
September 21, 2017: Tata Sons’ board approves plan to become a private company.
June 12, 2018: NCLT sets July 4 as the date of order.
July 4, 2018: NCLT defers judgement till July 9.
July 9, 2018: NCLT dismisses Cyrus Mistry’s pleas challenging his removal as chairman of Tata Sons. The tribunal says Mistry was removed as the board and its members lost confidence in him.
January 8, 2019: Cyrus Investments, the investment firm of Shapoorji Pallonji (SP) Group, contends that Cyrus Mistry was removed as Tata Sons chairman against the company’s Articles of Association (AoA) as his removal was not on the agenda of the board meeting on October 24, 2016.
December 18, 2019: Cyrus Mistry restored as Tata Sons Chairman by NCLAT. The NCLAT, however, stayed the operation of the order with respect to reinstatement for four weeks to allow Tatas to appeal.
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