Mistry has no plans to resign as Chairman of Tata Sons
Cyrus Mistry, who was ousted as chairman of Tata Sons last week, is not going to resign from his position in the company by himself, according to sources close to Mistry.
Even a week after he was removed from his position by Tata Sons board of directors, Mistry remains the chairman and non-executive director of Tata Motors Ltd, Tata Power Ltd and Indian Hotels Co. Ltd, among other subsidiaries under the gruop, media reports said.
A source was quoted by Times of India as saying: “He will discharge his fiduciary duty as required by law in all his positions in the Tata group.”
Mistry, who was chosen as Ratan Tata’s successor in November 2011, was removed from the post of chairman citing a “lack of performance”. Ratan Tata is acting as the Interim Chairman of the group now.
On the other hand, evicting Mistry will be difficult task now as Tata Sons doesn’t hold a majority of the stock in several companies under the group, reports said.
Since the removal of Mistry, Tata’s listed companies have lost a combined $3.5 billion in market value.
After the surprise departure, Mistry had alleged inappropriate interference by Ratan Tata saying, “apart from the invalidity and illegality of the business that was conducted, I have to say the board of directors has not covered itself in with glory,” in a confidential letter sent to executives.
However, the Tata Sons has accused Mistry of making “unsubstantiated claims and malicious allegations” against the conglomerate as the gloves came off in a bitter and highly public row over his sacking.
Interim Chairman Ratan Tata on Tuesday said the removal of Mistry was “absolutely necessary” for the future success of the company.