Extending an appeal to all stakeholders of Tata companies, the Tata group has proposed the removal of Cyrus Mistry as the chairman and director of all Tata companies. The appeal lays out several grievances against Mistry including the fact that he misled the selection committee in 2011 through lofty statements about his plans which he failed to realise and that the dividend income of Tata Sons has been continuously falling under Mistry.
In a statement released, the Tata group further accused Mistry of breach of trust since he failed to maintain distance from his family enterprise- Shapoorji Pallonji and the other Shapoorji Pallonji Group entities- as per what was decided along lines of good governance when he was first appointed as chairman.
“Mistry took advantage of free hand to weaken management structures,” said Tata Sons adding that in the past few years he had concentrated all authority of the company in his own hands.
Reacting against Mistry’s recent allegations against the company, Tata sons stated that “Mr. Mistry’s statements have caused the Group enormous damage and caused considerable financial loss to all shareholders, running into tens of thousands of crores in our opinion,” They went on to claim that Mistry’s retraction from his commitments had created grave concern regarding his ability to lead the company, devoid of any personal conflicts and that as per propriety he should have stepped down from the chairmanship of the various Tata companies when he was removed as chairman of Tata Sons.
Cyrus Mistry was removed as chairman of Tata Sons in October this year and Ratan Tata took his place as interim chairman. Soon after his removal, Mistry hit back at the Tata Group with allegations of fraudulent transactions and unethical practices.