Ratan Tata Vs Cyrus Mistry; Personal letter controversy explained

Last year, NCLAT (National Company Law Appellate Tribunal) ordered in favor of Cyrus Mistry reinstating him as the executive chairman of the group. The ruling acknowledged the misconduct of the Tata Sons boards against the minority shareholders. The apex court stayed the order of NCLAT on the plea that was filed by Tata Sons against the order. In the recent development, the Cyrus Mistry presented three personal letters written by Ratan Tata as the chairman of the board to Pallonji Mistry, father of Cyrus Mistry, who served as the board member from 1980 to 2004. The first letter was written in 1991 when Ratan Tata took over as the chairman, the second letter was written when TCS went for an IPO in 2004. The third letter was written in 2005 when Pallonji exited the board. People close to Ratan Tata have declined the claims of Cyrus as personal letters cannot stand legal validity to seek proportionate representation in Tata Sons.

Cyrus Mistry was removed as the executive chairman of the Tata Sons in 2016 by the board. Ratan Tata is the Chairman Emeritus of Tata Sons.

Leave a reply