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Mistry quits Tata group director roles but vows to fight on

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Reuters MUMBAI
Last Updated : Dec 19 2016 | 9:07 PM IST

By Promit Mukherjee

MUMBAI (Reuters) - Former Tata Sons chairman Cyrus Mistry bowed to pressure to quit from the boards of all Tata group companies on Monday, but promised to fight to improve the $100 billion salt-to-software conglomerate's governance.

Mistry said he was resigning as a director from the boards of all Tata group listed firms, just ahead of extraordinary general meetings (EGMs) called by Tata Sons to oust him.

His exit, which follows a bitter boardroom battle since late October when the directors of Tata Sons sacked him as chairman of the group, spares the Indian company a series of acrimonious shareholders meetings.

Ratan Tata, patriarch of the Tata group, had been lobbying institutional and retail shareholders of each of the group companies to get them to vote for Mistry's removal.

In a letter to shareholders on Dec. 7, Tata wrote that Mistry's continued presence was a "serious disruptive influence" in the group.

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Mistry, in a letter published on Monday, vowed to keep up his campaign from outside the company.

"It is time to shift gears, up the momentum, and be more incisive in securing the best interests of the Tata Group."

"It is with this thought that I have decided to shift this campaign to a larger platform and also one where the rule of law and equity is upheld," Mistry added.

In separate regulatory filings, Indian Hotels and Tata Steel said that Mistry has stepped down as director from their respective boards with immediate effect.

(Editing by David Clarke and Alexander Smith)

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First Published: Dec 19 2016 | 8:59 PM IST

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