Mistry skips Tata Sons board meeting

Terms it 'illegal'; board to meet again in mid-December

Escalating the legal battle with the Tata group, Cyrus Mistry, the ousted chairman of Tata Sons, skipped the board meeting of the Tata group’s holding company on Thursday, saying it was “illegal” and not chaired by a legal chairman. The meeting, held at Bombay House in the afternoon, was chaired by Ratan Tata who was appointed interim chairman of Tata Sons on October 24, replacing Mistry.

According to a source close to the development, Mistry had earlier confirmed to attend the board meeting but sent a letter to Tata Sons on Thursday saying the meeting was not legal. Another source said Tata had a meeting with few Tata Sons directors earlier in the day before the formal board meeting. Tata Sons board will meet again in mid-December to take stock of the situation.

 

When contacted, a Tata insider said: “There is a dichotomy in his (Mistry’s) statements when he is calling the board meets of Tata Global and Tata Sons (where he was removed as chairman) illegal, and meeting of independent directors where he remains as chairman to be legal,” said a Tata Sons source.

Mistry, 48, was removed as the chairman of Tata Sons on October 24 by the board without citing any reason, and appointed Ratan Tata, 78, interim chairman. In the same meeting, Tata Sons changed its retirement policy to bring back Tata. Mistry called the October 24 meeting “illegal” as no notice was given on his removal or appointment of Tata. According to sources, just before the board meet started on October 24, Tata asked Mistry to quit, which the latter refused.

A day later, Mistry accused Tata of interfering with Tata Sons’ investments and saddling the group with $18 billion potential write-downs due to wrong acquisition strategy overseas. He also accused the Tata group of not taking action on a Rs 22 crore financial fraud in Air Asia.

Mistry’s term was ending in March 2017 as director of Tata Sons Ltd. An independent director of Tata Steel said the board should have waited till his term ended, instead of removing him in “illegal way”.  

Tata Sons has also called for removal of Nusli Wadia from the boards of Tata Chemicals, Tata Steel and Tata Motors for “galavanising” other independent directors to fight against Tata. 

READ FULL COVERAGE OF THE TATA VS MISTRY BOARDROOM BATTLE