LIVE TV
ZEE Business
ZEE BUSINESS
हिंदी में पढ़ें  हिंदी में पढ़ें
Live TV
Live TV
  • Home
  • Budget 2021
  • Personal Finance
    • PPF
    • Mutual Funds
    • Income tax
    • EPFO
    • Income Tax Calculator
    • Personal Loan Calculator
    • Car Loan Calculator
    • Home Loan Calculator
    • SIP calculator
    • SWP Calculator
    • MF Returns Calculator
    • Lumpsum Calculator
  • India
    • Companies
    • Property
    • Startups
    • Uidai
  • Economy
    • Aviation
  • Tech
    • Mobiles
    • Apps
  • Auto
    • Cars
    • Bikes
  • Markets
    • Commodities
    • Currency
  • Jobs
  • Indian Railways
  • World
    • Economy
    • Politics
    • Markets
  • videos
  • photos
  • Authors
  • More ...
    • VIDEOS
    • PHOTOS
Read in App
Business News » Companies News

Big setback for Cyrus Mistry in fight against Tata Sons, this is what NCLT did

Cyrus Mistry had alleged mismanagement and oppression of minority shareholders by Tata Sons Chairman emeritus Ratan Tata and other trustees. Earlier, the ousted chairman fired a fresh salvo at the management questioning the rationale behind some actions like the free sale of its telecom arm to Airtel, massive debt-driven acquisitions by Tata Steel and its unequal tie-up with Thyssenkrupp, and a first-ever dip in TCS profit among others. 

  • Twitter
  • Facebook
  • Linkedin
  • whatapp
  • View in App
Big setback for Cyrus Mistry in fight against Tata Sons, this is what NCLT did
In yet another setback for former Tata Group chief Cyrus Mistry, the Mumbai Bench of the NCLT ruled that Tata Sons board of directors had the right to remove executive directors and that there was nothing wrong with the process. Image source: PTI
Written By: ZeeBiz WebTeam
Updated: Mon, Jul 09, 2018
11:23 am
New Delhi, ZeeBiz WebDesk
RELATED NEWS
Tata Power Solar wins Rs 1,200 crore order to set up 320 MW project from NTPC Tata Power Solar wins Rs 1,200 crore order to set up 320 MW project from NTPC
In chat with Anil Singhvi, Sandeep Jain recommends Nelco share | Money-making opportunity In chat with Anil Singhvi, Sandeep Jain recommends Nelco share | Money-making opportunity
2020s belong to India, says Tata Group Chairman N Chandrasekaran 2020s belong to India, says Tata Group Chairman N Chandrasekaran
Walmart-Tata Deal: Stock market experts bet high on Tata Consumer shares; predict bumper returns in just six month Walmart-Tata Deal: Stock market experts bet high on Tata Consumer shares; predict bumper returns in just six month
Tata Consumer Products is redrawing its entire sales and distribution system - Here is why Tata Consumer Products is redrawing its entire sales and distribution system - Here is why

In yet another setback for former Tata Group chief Cyrus Mistry, the Mumbai Bench of the National Company Law Tribunal (NCLT) today ruled that Tata Sons board of directors had the right to remove executive directors and that there was nothing wrong with the process that was carried out. Notably, Mistry was sacked by Tata Sons in swift moves initiated by former chief Ratan Tata.
 
Cyrus Mistry had alleged mismanagement and oppression of minority shareholdes by Tata Sons Chairman emeritus Ratan Tata and other trustees.  In the first week of this month, the ousted chairman fired a fresh salvo at the management questioning the rationale behind some actions like the free sale of its telecom arm to Airtel, massive debt-driven acquisitions by Tata Steel and its unequal tie-up with Thyssenkrupp, and a first-ever dip in TCS profit among others. 
 
In a letter to the directors of Tata Sons, Cyrus Investments, which is the key investment vehicle of the Mistry family and the key petitioner in his legal feud with the Tatas, Mistry reportedly sought accountability and information from the board of Tata Sons in which his family owns 18.34 per cent.
 
A PTI report stated to have seen the 8-page letter, titled Tata Group Strategy/Performance/Governance Issues dated June 30 and addressed to the entire board of Tata Sons. The office of Mistry did not respond to the calls, while Tata Sons declined to comment.
 
The Mumbai bench of the NCLT delivered its verdict today on the bitter legal feud that Mistry has been fighting ever since dismissal as the chairman of the Tats Sons on October 24, 2016. 
 
The key allegation by Mistry camp is that his removal as chairman and subsequently as a director of the board Tata Sons was a result of oppression by the promoters who are in turn owned by Tata Trusts that owns over 68 per cent in Tata Sons.
 
Stating that the board is accountable for governance and performance of the Tata Group as also to the minority shareholders, the letter reportedly said that despite staring at several burning issues, "Tata Sons is hiding behind the veneer of media management to present a rosy picture."
 
The letter reportedly questioned the "free transfer of Tata Teleservices" to Airtel, saying the Tatas did not get any benefit from the deal despite transferring 40 million customers, a large swathe of liberalised spectrum and access to Tata Tele's extensive fibre network, while it has immensely benefited the acquirer.
 
Terming the deal, which led to an increase in market capitalisation of Airtel by almost Rs 30,000 crore, as a "sweetheart deal," Mistry says, "he fails to understand the logic of offering Bharti Airtel access to these assets effectively for free."
 
In the letter, Mistry reportedly also came out strongly against the clean-chit given by the Tata Sons board to R Venkataramanan, its nominee on the AirAsia India board and the managing trustee of Tata Trusts, "without conducting any known independent investigation."
 

Watch this Zee Business video

 This the letter reportedly said is "a continuing act of mismanagement and failure to carry out fiduciary duty" and termed the board decision to allow Venkataramanan, has brought reputational risks to Tata Sons and the group to continue in his position as "unprecedented" as it has "sent a terrible message to hundreds of thousands of Tata employees".

Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.

TAGS:
Tata GroupCyrus MistryRatan TataNCLT
RELATED NEWS
Tata Power Solar wins Rs 1,200 crore order to set up 320 MW project from NTPC Tata Power Solar wins Rs 1,200 crore order to set up 320 MW project from NTPC
In chat with Anil Singhvi, Sandeep Jain recommends Nelco share | Money-making opportunity In chat with Anil Singhvi, Sandeep Jain recommends Nelco share | Money-making opportunity
2020s belong to India, says Tata Group Chairman N Chandrasekaran 2020s belong to India, says Tata Group Chairman N Chandrasekaran
Walmart-Tata Deal: Stock market experts bet high on Tata Consumer shares; predict bumper returns in just six month Walmart-Tata Deal: Stock market experts bet high on Tata Consumer shares; predict bumper returns in just six month
Tata Consumer Products is redrawing its entire sales and distribution system - Here is why Tata Consumer Products is redrawing its entire sales and distribution system - Here is why

LATEST NEWS

SBI share price: Technical Analysis for investors by Bonanza Portfolio

EXCLUSIVE - Maritime Summit 2021: Cochin Shipyard, Shipping Corporation set to emerge as big beneficiaries

Stocks to Watch: Symphony, Blue Star, Amber Enterprises shares to gain as IMD forecasts sizzling hot summer

Microsoft says Chinese hackers targeted groups via server software

Robinhood, a go-to for young traders, benefits from short sale demand

Anil Singhvi’s Strategy March 3: Day support zone on Nifty is 14,800-14,850 & Bank Nifty is 35,000-35,125

Yes Bank Share price I Anand Rathi maintains Sell rating with price target of Rs 14

Gold Price Today 2-03-2021 – MCX Gold cheaper by Rs 400 on Tuesday morning, Silver expensive by Rs 69; BUY or SELL?

Sara Ali Khan: My mother has gone through so much more than I have

LIVE: Gujarat Municipal Election Results 2021: BJP wins 803 seats - Check latest news updates, seat details here

  • India News
  • World News
  • Companies News
  • Market News
  • Personal Finance News
  • Technology News
  • Automobile News
  • Small Business News
  • Income Tax Calculator
  • Live TV
  • Videos
  • Photos
  • Author
  • Rss Feed
  • Advertise with us
  • Privacy Policy
  • Legal Disclaimer

Latest Trending Updates

  • EPFO
  • Budget 2020
  • Income Tax Return
  • Auto Expo 2020
  • Home Loan
  • Business News

Trending Topics

  • Income Tax
  • income Tax Calculator
  • 7th Pay Commission
  • Reserve Bank of India
  • GST
  • Latest Business News

Follow us on

zeebiz
zeebiz

Partner Sites

  • Zee News
  • Hindi News
  • Marathi News
  • Bengali News
  • Tamil News
  • Malayalam News
  • Gujarati News
  • Telugu News
  • Kannada News
  • DNA
  • WION
Copyright © Zee Media Corporation Ltd. All rights reserved