Supreme Court has stayed the NCLAT order reinstating Cyrus Mistry as Executive Chairman of Tata Sons. This comes after Tata Sons, Ratan Tata and other Tata companies appealed against the National Company Appellate Law Tribunal (NCLAT) decision to reinstate Mistry as the Executive Chairman of the company and as director.
The Tatas had said in the petition that the NCLAT order undermined corporate democracy and the rights of the board of directors. It said that reinstatement wasn’t even something Cyrus Mistry sought for.
Ratan Tata had filed a separate case against the NCLAT order after the NCLAT said that Ratan Tata removing Mistry was evidence of mismanagement and oppression of minority shareholders. Ratan Tata, in his petition questioned the comments made by the tribunal against him.
However, Cyrus Mistry said on Sunday that he didn’t want to take up the chairmanship of Tata Sons or become director of any Tata Group company. He however said that he would pursue all options to protect the Shapoorji Pallonji Group's rights as minority stakeholder, including a seat at the Tata Sons' Board.
"To dispel the misinformation campaign being conducted, I intend to make it clear that despite the NCLAT order in my favour, I will not be pursuing the Executive Chairmanship of Tata Sons, or Directorship of TCS, Tata Teleservices or Tata Industries. I will however vigorously pursue all options to protect our rights as a minority shareholder, including that of resuming the thirty year history of a seat at the Board of Tata Sons and the incorporation of the highest standards of corporate governance and transparency at Tata Sons," he said, in a statement.
In October 2016, Mistry was ousted as the chairman of Tata Sons. Mistry was appointed as the chairman in 2012 after Ratan Tata announced his retirement. He was the sixth chairman of the massive conglomerate. After his ousting, N Chandrasekhar, who was then the CEO of Tata Consultancy Services (TCS) was appointed as the executive chairman of the group.