This isn’t a court hearing, Cyrus Mistry was told when he objected
Mumbai, Oct 25: Board meetings of Tata Sons are normally staid, predictable affairs.
But not the meeting on Monday which led to the shock exit of the company’s chairman, Cyrus Mistry.
The company removed Mr Mistry, almost four years after he became its first chief from outside the Tata family, and brought back Ratan Tata, 78, who has taken interim charge until a successor is appointed.
“The board in collective wisdom and on recommendations of principle shareholders took a decision to change for long-term of interests of Tata Sons and Tata Group,” a Tata Sons spokesperson said.
According to an exclusive report by NDTV, Mistry’s exit was not — perhaps deliberately — listed on the board agenda. An insider told NDTV that it was brought up as a ‘residuary’ item, under the ‘any other items’ category, listed at the end of every board agenda.
When it came up, Mistry is said to have protested, calling it an illegal move.
He is said to have pointed out that according to the Tata rule book, a 15-day notice has to be given before bringing such an item before the Board, a timeframe, he said, in which he could have made a case for himself.
But the Board is said to have told him “we have legal opinion” in support of the decision. Mistry asked to see the opinion; the board reportedly told him “this was not a court hearing”.