Ending an eight week-long bitter battle in the Tata Sons’ boardroom, ousted Tata Group Chairman Cyrus P Mistry on Monday quit from the boards of six listed companies, including Tata Motors and Indian Hotels. Besides, Mistry also said he is shifting gears and moving away from the extraordinary general meetings (EGMs) to a larger platform.
In a two-page statement issued by Mistry himself, he said, “Having deeply reflected on where we are in this movement for cleaning up governance and regaining lost ethical ground, I think it is time to shift gears, up the momentum, and be more incisive in securing the best interests of the Tata Group.”
“Towards this end, the objective of effective reform and the best interests of employees, public shareholders and other stake holders of the Tata Group (the very people I sought to protect as Chairman) would be better served by moving away from the forum of the extraordinary general meetings,” he added.
Forty-eight-year old Mistry, who was unceremoniously removed as Chairman of Tata Sons on October 24, said the objective of effective reform and best interests of employees, shareholders and other stakeholders of the Tata Group would be better served by moving away from the forum of the EGMs.
While Mistry, did not specifically say he was resigning from either Tata Sons, where he still continues as a director despite being removed as chairman, or from the operating firms, sources close to him said he has quit. Both sides told media that operating companies will make regulatory announcements to the stock exchanges shortly.
Tata Sons, the holding company of the $103 billion group, has called extraordinary general meeting (EGMs) of listed companies to consider its proposal to remove Mistry as director on their board.
Calling his predecessor Ratan Tata coming back as interim chairman after his removal from Tata Sons as illegal coup, Mistry said he had in his representation to shareholders detailed, supported by documents, the governance breakdown in Tata Sons caused by actions of trustees of Tata Trusts. “In recent weeks, the conduct of those at the helm of affairs has further unmasked the absence of ethical standards,” he said.