Tata - Mistry Case: “Victory For Good Governance And Minority Shareholder Rights” - Cyrus Mistry
Cyrus Mistry had a major win today as the National Company Law Appellate Tribunal ruled that his dismissal as chairman of Tata Sons Ltd. was illegal.
In its order the NCLAT restored the chairmanship of the Tata Group holding company to Mistry. It also set aside the change of Tata Sons from public to private company.
In a statement issued after the court order, Mistry said it was a vindication of his stand and a victory for good governance.
Here is the full text of Cyrus Mistry’s statement...
“Today’s judgment is not a personal victory for me, but is a victory for the principles of good governance and minority shareholder rights. For over fifty years, the Mistry family, as the significant minority shareholder of Tata Sons, has always endeavoured to play the role of a responsible guardian of an institution that the entire nation is proud of.
The outcome of the appeal is a vindication of my stand taken when the then board of Tata Sons, without warning or reason removed me, first as the executive chairman, and subsequently as a director of Tata Sons.
My endeavor as Executive Chairman had always been to establish a culture and processes that promote effective board governance to create long term stakeholder value, sustainable profits and growth.
For the Tata Group to prosper as an institution, it is important that the management of individual companies, their Boards, the management of Tata Sons, the Board of Tata Sons and the shareholders of Tata Sons, all work harmoniously within a robust governance framework, that in substance and form, protects the rights of all stakeholders, including shareholders, investors and the Tata Groups employees, who represent the strongest asset of the Group.
I believe it is now time that all of us work together for sustainable growth and development of the Tata Group, an institution that we all cherish.”
Meanwhile, Tata Sons has made clear its intent to appeal the decision at teh Supreme Court. “It is not clear as to how the NCLAT Order seeks to over-rule the decisions taken by shareholders of Tata Sons and listed Tata operating companies at validly constituted
shareholder meetings,” Tata Sons said in statement.
Here is the full text of Tata Sons’ statement...
“Tata Sons has received and is analysing the order of the National Company Law Appellate Tribunal (NCLAT). It is not clear as to how the NCLAT Order seeks to over-rule the decisions taken by shareholders of Tata Sons and listed Tata operating companies at validly constituted shareholder meetings. The NCLAT order appears to even go beyond the specific reliefs sought by the Appellant.
Tata Sons strongly believes in the strength of its case and will take appropriate legal recourse. Tata Sons assures its various stakeholders that it not only has always operated in a fair and equitable manner but also acted in accordance with the law and will continue to do so.”