In a big win for Cyrus Mistry, the NCLAT on December 18 restored him as executive chairman of Tata Sons. (Photo Credit: PTI file)
Cyrus Mistry on Sunday said he's not interested in getting back into Tata Group in any capacity. Mistry in a statement said he will not pursue Chairmanship of Tata Sons and neither directorship in the three Tata Group companies - TCS, Tata Tele and Tata Industries Ltd. However, Mistry said he will pursue all options to protect rights of minority shareholders. Mistry said his focus has always been upholding best standards in corporate governance. Interests of Tata group are far more important than interest of any individual or me, said Mistry.
In a big win for Mistry, a company law appeals court on December 18 restored him as executive chairman of Tata Sons and ruled that appointment of N Chandrasekaran as head of the holding company of over USD 110 billion salt-to-software conglomerate was illegal. The National Company Law Appellate Tribunal (NCLAT) held that the group's chairman emeritus Ratan Tata's actions against Mistry were oppressive and the appoint of the new chairman illegal.
It, however, stayed the operation of the order with respect to reinstatement for four weeks to allow Tatas to appeal. Setting aside a lower court order, the NCLAT also quashed the conversion of Tata Sons into a private company from a public firm.
It also directed Tata Sons not to take any action against Mistry, whose family owns some 18 per cent interest in Tata Sons. The remaining 81 per cent is held by Tata Trusts and Tata Group companies along with Tata family members.
Mistry, scion of the wealthy Shapoorji Pallonji family, had in December 2012 succeeded Ratan Tata as the Executive Chairman of Tata Sons, a post that also made him the head of all Tata group listed firms such as Tata Power and Tata Motors.
In an overnight coup, he was removed as the Chairman of Tata Sons in October 2016. Along with him, the entire senior management too was purged and Ratan Tata was back at the helms of affairs four years after he took retirement.
Mistry had challenged the removal before the Mumbai bench of National Company Law Tribunal but lost and then went in for appeal at the NCLAT.