The Tata group denied the allegations, saying there was nothing wrong in it and the board has exercised its authority.
Tata Mistry Conflict
The Supreme Court has overturned the decision of the NCLAT, giving a major relief to the Tata from the Supreme Court on the country’s largest corporate dispute. In this case, a petition was filed on behalf of both Tata Sons and Cyrus Mistry in the Supreme Court for early settlement of the case. Tata Sons Pvt. Ltd. And Cyrus Investments Pvt. Ltd. Had filed a cross-appeal against the decision of the National Company Law Appellate Tribunal (NCLAT).
The NCLAT, in its order, reinstated Cyrus Mistry Mistry as executive chairman in the $ 100 billion Tata group. The court reserved the judgment in this case on 17 December last year. The Shapoorji Pallonji (SP) group had told the court that the removal of Mistry as chairman of Tata Sons was a bloody game and ambush in a board meeting held in October 2016.
The matter started as soon as Ratan Tata retired
This was against the principles of corporate governance. At the same time, the Tata group had denied these allegations, saying that there was nothing wrong in this and the board, using its authority, had removed Mistry from the post. The search for a new chairman started when Tata Sons chairman announced his retirement in 2010. Finally in 2012, Cyrus Mistry of Shapoorji Pallonji, who was separated from the Tata family, was appointed chairman of Tata Sons but was removed after four years in dramatic developments.
Mistry was dismissed from the post of chairman
On 24 October 2016 Ratan Tata of Tata Sons sacked Cyrus Mistry as the chairman of Tata Sons. Cyrus Mistry filed a petition in the Company Law Tribunal against this decision. The tribunal rejected Mistry’s plea, stating that Tata Sons had the right to remove the chairman at any time. The decision was challenged in the National Company Law Appellate Tribunal (NCLAT). The NCLAT termed the removal of Cyrus Mistry as chairman in December 2019 illegal. Apart from this, there has also been talk of many irregularities in Tata Sons.
Tata Sons filed a petition by the Supreme Court
Tata Sons filed a petition in the Supreme Court against this decision. Tata Sons told the Supreme Court that Cyrus Mistry lost the trust of all the members in the company’s Board of Directors, hence Cyrus Mistry was removed from the post of chairman in the interest of the company. According to an estimate, the market capitalization of all the listed companies of the Tata group is 7.9 lakh crores. However, according to Crisil it is Rs 7.13 lakh crore.
66% stake of Tata group in Tata Sons
Tata Sons has a 66 percent stake in the Tata group. This is followed by Shapoorji Group, which is owned by Cyrus Mistry. Shapoorji Group holds 18. 37 per cent stake in the Tata group. That is, 1.75 lakh stake is in the Tata group of Shapoorji group.
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