Apropos Dev Chatterjee’s front-page lead report, “Cyrus Mistry out, Ratan Tata in” (October 25) Mistry’s removal from the chairmanship of Tata Sons and Ratan Tata’s induction as interim chairman indicate the professionalism and high corporate governance standards at the country’s biggest business group.
The fact that the board did not flinch on the issue of removing someone, who is a large shareholder, is testimony to the members’ independent thinking and commitment to what is in the interest of the company. The group might carry the Tata name but the board’s action reaffirms that it is run in a truly professional manner.
There are theories and speculations galore about what exactly happened at that crucial board meeting on Monday, but clearly it was a decision taken solely in the interest of the companies controlled by the group.
The infographic accompanying the report shows that the group’s performance under Mistry hasn’t been bad —barring Tata Steel and Tata Power — but obviously, the board didn’t think it was good enough and felt it could have done better.
There are also issues of the increase in net debt and the now-disbanded Group Executive Council having become a bigger power centre — and perhaps a coterie of the chairman’s “favourite boys” — than the board. Something akin to the standing committees in industry chambers that often belittle the managing committee, which should really be the final decision-making body.
There will be protracted discussions, allegations and counter charges, may be even court battles, but the board of directors has definitely taken legal opinion before making the decision and they are all mature enough to do all this gracefully and within the confines of the boardroom rather than washing dirty linen in public.
I wish the group success in all its ventures and hope it brings greater glory to the venerable Tata name.
Krishan Kalra Gurgaon
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