Tata Sons hit out at Cyrus Mistry and stated that the chairman's retraction from commitments created grave concerns on his ability to spearhead the group.
Further heating the ongoing boardroom battle, Tata Sons on Sunday accused former chairman Cyrus Mistry of misleading the selection committee set up in 2011 for selecting a chairman to succeed Ratan Tata, reported PTI. Mistry, who was selected as the chairman of the holding company with great pomp in 2012, was unceremoniously removed on October 24 2016. Since then, much dirty linen has been washed in public as both Mistry and Tata Sons have been hitting out at each other.
Tata Sons stated, "Mistry did not distance himself from his family enterprise Shapoorji Pallonji & Co as promised." It also said that the ousted chairman's reversal from his commitments raised questions on his ability to spearhead the group. "Mistry's retraction from commitments created grave concern on his ability to lead Tata Group devoid of personal conflicts and put to risk high standards of self philosophy."
"Mistry made lofty statements about plans for Tata Group, but didn't give into effect management structures and plans he promised," said Tata Sons. The holding company further blamed him for the continuous fall in dividend income (other than from Tata Consultancy Services) and doubling of staff costs.
Tata Sons stated that Mistry gradually concentrated all powers and authority, systematically diluting representation of Tata Sons on Boards of group companies. It accused him of taking advantage of free hand to weaken the management structures in the company. "Mistry claimed he wasn't given 'free hand'. Ironically in our view, it was this 'free hand' & trust in him that he took advantage of" said Tata Sons.
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
 "Cyrus Mistry")
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
)
){kind=small}
){kind=small}
)
)
)
)
)
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}