Tata Group’s reputation has been at stake since shocking removal of Cyrus Mistry. Mistry has taken the war from board room to the media. Issues such as documents leak, deteriorating businesses of various Tata firms and regular attack on Ratan Tata are in news for quite some time.
Mistry had written to the shareholders regarding the issues he faced during his tenure at the organization and demanded support. To further extend the war, now Tatas have written to all the shareholders highlighting the reasons of the sudden removal of Mistry.
Tata Sons Ltd. has written to the shareholders as various extraordinary general meetings of various Tata Companies are coming up in next few weeks.
The letter has key points on which the decision of Mistry’s removal was taken. The trust lost its confidence in Mistry due to many reasons. Major reason was the misleading of the selection committee by Mistry during his election as chairman of Tata Sons. Mistry made some lofty statements about the management structure and author disposal, which had major impact on the selection committee. These plans were all in statement and none in action.
The letter also mentions that Mistry put his personal interest over the organization. Breach of trust and risk to the high standards of self-less governance were also the reason behind this move. As TCS has been traded as Cash Cow, other firms’ performance deteriorated significantly since Mistry’s appointment.
The trust also put serious allegation of weakening the management structure of the organization. It also believed that Mistry failed to live up to the Tata philosophy. They also considered that leaks by Mistry’s office have created enormous damage and caused considerable financial loss to all shareholders.
The trust demanded that all shareholders must take an informed decision at those EGMs. The group also criticized Mistry’s letter to shareholders as misleading and based on wrong information.
The trust blamed Mistry for willfully breaching the Governance Guidelines Framework.
In an appeal to shareholders, Tata Sons has requested the support in removing Mistry from the organization.