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Me to We: Cyrus Mistry takes battle to Tata Trusts

Former chairman tries to rope in minority shareholders of group firms

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From ‘Me’ to ‘We’: Cyrus Mistry is changing his strategy to fight the mighty Tatas by trying to turn his opposition to his ouster from the chairmanship of the group into a ‘movement’ of minority shareholders of varied Tata group companies.

He is alleging “widespread breakdown” of corporate governance within Tata Sons and the trusts that controls it.

“What do I want? Let me say, this never was about me,” Cyrus Mistry says at the later part of the 15 page letter to shareholders of Tata Group companies which are voting on a common resolution to remove him as the chairman of respective companies.

Beyond shooting off the letter, Mistry’s earnestness towards this movement is signified by opening a website www.cyrusforgovernance.com where he has uploaded this and all his other statements given out to the media.

“The actions we collectively take now, is what will define the Tata Group’s future... I therefore urge all you to think beyond the here and now. I urge you to have your voice heard loud and clear. I ask you to be a part of defining the future,” he says at the end of the letter that ends with a postscript: “Your support matters”.

Elsewhere in this letter, Mistry touched upon bigger themes like a call for improvement in corporate governance standards of Tata Sons and Tata Trusts.

“The governance of Tata Trusts has to become more accountable, transparent and the moral high ground that has been lost needs to be reclaimed,” he said, adding that desire of trusts trying to interfere in the operations of companies is undesirable.

“If the trustees were to start managing the business, overstepping the entire governance structure in Tata Sons, the trustees would jeopardise their legal status including tax exemptions, and thereby put to risk the very future of the Tata Group. The ethical conduct by trustees has to be beyond doubt.”

It was not exactly the trusts but Ratan Tata who was at fault, Mistry indicated.  

“The conferment of all decision making power in one man or a “high command” among them is unethical, improper and a breach of trust,” he said, reminding investors that there is an urgent need to reform the trusts as the “very future of the Tata Group lies in how the trustees govern the Tata Trusts, since the main trust property is the holding of shares in Tata Sons”.

But even as Mistry tries to convert his personal fight against primarily an individual into a movement, the ousted chairman’s letter oscillated between self righteousness and solipsism.

“I did not give any interviews to the press, but instead, used my time to communicate widely to the internal community that mattered to me the most,” he claimed.

GEORGE BUCKLEY AS TATA CHAIRMAN?

George Buckley, chairman of British engineering company Smiths Group Plc, has been approached to replace ousted Cyrus Mistry as chairman of Tata Sons Ltd, reports Bloomberg. Buckley is willing to consider the Tata role and could juggle it with his Smiths chairmanship.

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