The shakeup saga at Tata Sons has moved forward with reports of Cyrus Mistry appointing senior advocate Janak Dwarkadas, lawyer Somasekhar Sundareshan and law firm Desai & Diwanji to take his fight into courts.
Cyrus Mistry was arbitrarily removed from the post of chairman of Tata Sons on October 24 in a boardroom coup.
“We have not decided whether to file a case at the National Company Law Tribunal or in the high courts,’’ said a person close to the development, to The Economic Times. ‘’We will take a final decision soon.”
Mistry has reacted to his ouster in an email made available to newspapers where he has said that he was given no opportunity to defend himself against the allegations made. He also termed it as a unique ouster in the annals of corporate history. In the mail he has further elaborated on how the old guard was leading the company into a debt trap and some companies like the Tata Nano were being held on for emotional reasons despite being a huge drain on the conglomerate. He has questioned certain decisions taken by the board along with the ex-chairman like the joint venture with Air Asia and Singapore Airlines and some questionable investments.
Without naming Ratan Tata , the ex-chairman and the present interim one, he has raised many questions about his investment decisions and style of functioning.
(Here is the link to the Full Text of the letter.)
There are some doubts about whether the matter can be taken to the National Company Law Tribunal as Mistry is still a director in the company and a member of the board. Removal of a chairman is very much still an internal company matter, according to some company law experts.
Though Mistry was removed as the chairman, he is still a director on the board of Tata Sons. His family owns 18.4% stake in Tata Sons, the holding company of Tata Group.