Tata Sons on Sunday alleged that its former chairman Cyrus Mistry misled the selection committee setup in 2001 for selecting a chairman to succeed Ratan Tata.
“Cyrus Mistry misled the Selection Committee set up in 2011 for selecting a Chairman of Tata Sons to succeed Mr. Ratan Tata, by making lofty statements about his plans for the Tata Group and more importantly indicated an elaborate management structure for managing the Tata Group, given its diversity of business, by suggesting a management structure aimed at dispersal of authority and responsibility,” Tata Sons said in a press release.
Days ahead the General meetings of Tata companies, Tatas said it would be appropriate to bring out key facts that resulted in the loss of confidence in Mistry.
The company charged Mistry of inappropriate conduct by retracting his promise to distance himself from his family enterprise- Shapporji Pallonji & Company- and thus created a serious breach of trust.
“This retraction, created grave concerns on Mistry’s ability to lead the Tata Group devoid of personal conflicts and put to risk the high standards of self-less governance, that lies at the core of the Tata philosophy,” the press release said.
The company also added that Mistry has been concerned for some time about the financial performance of Tata Sons of which Mistry was the Executive Chairman and primarily responsible for its performance.
” During Mistry’s tenure as Executive Chairman, dividend income declined continuously and on the other hand, staff costs more than doubled. All this would have resulted in losses but for the TCS dividend”, the company said.
Blaming Mistry for the ongoing corporate war, Tatas said that Mistry’s statements have caused the group enormous damage and considerable financial loss to all shareholders.
