Former Tata Sons chairman, Cyrus Mistry has stepped down from the board of all six listed Tata companies, but continues to remain a board member of the promoter holding company.
In a media statement, Mistry announced his resignation saying that it was in the best interest of shareholders, and employees of the Tata Group.
Towards this end, the objective of effective reform and the best interest of employees, public shareholders and other stakeholders of the Tata Group (the very people I sought to protect as Chairman) would be better served by moving away from the forum of the extraordinary general meetings.”Cyrus Mistry
Consequently, the extraordinary general meetings (EGM) convened for his removal by Tata Power Ltd. and Indian Hotels Company Ltd. are now merely procedural. The other EGMs convened by Tata Steel Ltd., Tata Motors Ltd. and Tata Chemicals Ltd. will go on according to schedule as they also seek to remove Nusli Wadia as an independent director.
However, this doesn't mean that Mistry is giving up his fight for "cleaning up governance" within the group.
Mistry added that he would shift his campaign to a larger platform, implying a legal battle against Tata Sons.
It is with this thought in mind that I have decided to shift this campaign to a larger platform and also one where the rule of law and equity is upheld. I had initially not thought that one would need to seek an external forum to adjudicate issues that should never have arisen in the first placeCyrus Mistry
Here is the full text of the statement -