It was a shocking Monday for Indian economy as the board of Tata Sons showed the door to Cyrus Mistry and brought back Ratan Tata at the helm.
“Tata Sons today announced its board has replaced Mr Cyrus P Mistry as Chairman of Tata Sons. The decision was taken at a board meeting held here today,” a Tata Sons statement said.
PTI
The development took place following a meeting in the evening of Monday and partly shook Dalal Street. Ratan Tata will be the interim chairman for four months. He is also among a five-member search committee entrusted with finding a successor within this period.
The five-member board includes TVS Group head Venu Srinivasan, Amit Chandra of Bain Capital, former diplomat Ronen Sen and Lord Kumar Bhattacharya.
Expect a blow back from the #CyrusMistry family, 2nd lgst shareholder of Tata Sons https://t.co/oYtTHXcAss
— rajeevdubey (@rajeevdubey) October 24, 2016
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#CyrusMistry family says his removal is illegal, required 15-day notice. It is war, it seems. So it was abt control of Tata Sons… https://t.co/PppSeUUrHK
Advertisement— rajeevdubey (@rajeevdubey) October 24, 2016
The 48-year-old Mistry took over from Ratan Tata on December 28, 2012. He became chairman on the basis of his representation from Shapoorji Palonji, the largest shareholder in Tata Sons.
The exact reason why he has been removed is not clear but analysts point out that under Mistry’s leadership, some of Tata businesses did not perform as expected especially the steel business.
Stocks of some Tata group companies did not take a hard fall at the perhaps because of Ratan Tata’s return and because the announcement came towards the closing bell.
BSE
Though Mistry has been removed, the positions of the CEOs of the group various businesses have not been touched.
Cyrus was the sixth chairman and only the second non-Tata (after Nowroji Saklatwala) to head the 143-year-old Tata Group in 2012.
