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Cyrus Mistry was outsted from the board of Tata Group in October 2016
Cyrus Mistry was restored as the executive chairman of Tata Sons today by the National Company Law Appellate Tribunal (NCLAT), three years after his dramatic sacking at a board meeting following which Ratan Tata took over as interim chairman. The tribunal said the restoration would apply only after four weeks – the time allowed to the Tatas to challenge the order before the Supreme Court. The tribunal held the company’s conversion from a public to private as illegal and also struck down the appointment of Natarajan Chandrasekaran as executive chairman of the salt-to-software conglomerate. Cyrus Mistry’s abrupt ouster had created an upheaval in the Indian corporate world.
Here are 10 things to know:
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Tata Sons has four weeks to appeal the order given by the NCLAT, news agency Reuters reported quoting a lawyer involved in the case.
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A two-judge panel of the NCLAT said on Wednesday that Tata Sons chairman emeritus Ratan Tata’s actions against Mr Mistry were oppressive. The court also said Tata Sons’ move to turn private was unlawful and ordered a reversal. Tata Sons’ board had approved a plan to go private in September 2017.
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Mr Mistry launched legal proceedings against Tata Sons after his ouster from the company, one of the country’s oldest and largest conglomerates.
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In July last year, the National Company Law Tribunal (NCLT) dismissed Mr Mistry’s plea challenging his removal as chairman of Tata Sons. The NCLT held that the Tata Sons board was competent to remove him as executive chairman and that he was ejected as the board members had lost confidence in him.
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The tribunal refused to accept Mr Mistry’s contentions that his removal was due to the result of mismanagement by the board and oppression of minority shareholders of the group.
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He appealed to the National Company Law Tribunal to overturn the dismissal and, following an unfavorable ruling, appealed to the NCLAT seeking to expunge disparaging remarks against him in the original order.
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The Tata Sons board removed Mr Mistry as chairman and appointed Ratan Tata as interim chairman in October 2016. The change in the top management came about four years after he had taken over from Mr Tata.
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In December 2016, Mr Mistry resigned as director from all Tata Sons companies and moved the NCLT alleging oppression of minority shareholders and mismanagement.
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In January 2017, Tata Sons named N Chandrashekaran as chairman. The next month, Mr Mistry was removed from the post of director on the Tata Sons board.
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Mr Mistry currently serves as managing director of Shapoorji Pallonji & Company, which is part of the Shapoorji Pallonji group owned by his family. He joined the board of Tata Sons in 2006 and was appointed deputy chairman in November 2011.
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