Cyrus Mistry lost board’s confidence, allegations malicious: Tata Sons
The Tata Group said on Thursday Cyrus Mistry, the ousted chairman of parent Tata Sons Ltd, lost its board’s confidence due to a combination of several factors, adding that an e-mail he wrote to them was leaked “in an unseemly and undignified manner”.
Tata Sons hit back at Cyrus Mistry on Thursday, using strong words for the first time in their battle to say that the ousted chairman made “repeated departures from the culture and ethos of the group” and is making “unsubstantiated allegations” in an “undignified manner” now that he has been removed.
The statement, issued on Thursday evening, did not address Mistry’s allegations about the management of group companies that ratcheted up $18 billion in losses. It, however, denied one of Mistry’s chief allegations that he was a lame duck chairman.
“It is unfortunate that it is only on his removal that allegations and misrepresentation of facts are being made about business decisions that the former Chairman was party to for over a decade in different capacities. The record, as and when made public, will prove things to the contrary,” said Tata Sons.
“There is a multitude of records to show that the allegations made by Mr. Cyrus Mistry are unwarranted and these records will be duly disclosed before appropriate forums,” the holding company for the $103 billion conglomerate said.
“As the executive chairman, he was fully empowered to lead the group and its companies… The Tata Sons board gives its Chairman complete autonomy to manage opportunities and challenges,” it said.
Full statement :
It also refutes another of Mistry’s chief points that he was sacked without notice. According to Tata Sons, he should have seen it coming.
“The directors of the Tata Sons board had repeatedly raised queries and concerns on certain business issues, and the Trustees of the Tata Trusts were increasingly getting concerned with the growing trust deficit with Mr. Mistry, but these were not being addressed,” said the statement, adding that eventually the board lost confidence in Mistry.
Tata Sons made the point that Mistry was not new to the working of the group, nor to its culture and ways. He joined the Tata Sons board in 2006. He was appointed deputy chairman in November 2011, and appointed chairman of Tata Sons on December 28, 2012.
“He would be fully familiar with the culture, ethos, governance structure, financial and operational imperatives of the Tata Group as well as various group companies,” says the Tata Sons statement. “The record, as and when made public, will prove things to the contrary.
“The strength of the Group is not just confined to its value system and ethics in the Board room but to a very large extent by the adherence to the values by its 600,000 plus employees whose spirit and cooperation has built the Group to where it is today. It is unforgivable that Mr. Mistry has attempted to besmirch the image of the Group in the eyes of the employees,” Tata Sons said.
