Business - - Nov 14,2016
The Tata Sons board on Monday meeting dismissed the chairman Mr. Cyrus Mistry. With this decision, the Tata Sons has once again shown that the Indian global company can dismiss anyone regardless of designation and stature. In this matter, The Tata Sons board gave not a single reason for abrupt dismissal of 48-year old chairman Cyrus Mistry and the board also select Ratan Tata as interim chairman. The Tata Sons board has established a selection panel to elect a new chairman and the board has instructed the selection panel to complete the selection procedure in four months.
The Irish citizen Cyrus Mistry was selected as chairman of the Tata group & Sons in November 2011, less than four-years into his tenure at the software-to-steel multinational group. During Mistry’s period in office, the TCS (Tata Consultancy Services) and Tata Motors performed well and it was appreciable but other four key group companies were underperforming. Before being sacked from Tata Sons, the nine-member board of Tata group and six members voted to oust Cyrus Mistry, two sidestepped, while Mr. Mistry opposed the judgment.
Tata Sons is currently fighting a legal conflict with NTT DoCoMo Inc., its separated partner in an Indian telecom project. DoCoMo is looking for imposing a London Court of International Arbitration order, asking Tata Sons to pay $1.17 billion for failing to sustain agreement. Tata Sons has credited $1.17 billion subject to Indian rules with the Delhi High Court to display its intent to NTT DoCoMo Inc.
The Indian global Company Tata group was established by Mr. Jamshedji Tata in the year 1868. It employs more than 660,000 employees and has total 29 registered entities with a joint capitalization of more than $103 billion.