When Tata Sons had made the shock announcement of removing its Chairman Cyrus Mistry, there had been murmurs that it was an unusual decision. Now it appears that the decision was acrimonious.
The Shapoorji Pallonji group has termed Cyrus Mistry’s removal as illegal. It had contented that a removal would’ve required a 15 day notice period, which wasn’t adhered to.
The decision to remove Mistry was not unanimous – out of the nine board members, 8 members voted. Six voted for Mistry’s ouster and two abstained.
— ET NOW (@ETNOWlive) October 24, 2016
Cyrus Mistry, of course, is the youngest son of Pallonji Mistry. Pallonji Mistry first bought shares in Tata Sons in the 1930s, a stake that, as of November 2011, stood at 18.5 percent. This makes Mistry’s father the largest single shareholder in a firm mostly controlled by trusts.
Mistry is also related to Ratan Tata by marriage – his sister Aloo is married to Noel Tata, the half-brother of Ratan Tata.
This situation is developing.