{"id":318068,"date":"2019-12-19T04:58:37","date_gmt":"2019-12-19T04:58:37","guid":{"rendered":"http:\/\/tehelka.com\/?p=318068"},"modified":"2019-12-19T08:59:31","modified_gmt":"2019-12-19T08:59:31","slug":"is-settlement-between-tata-sons-cyrus-on-the-cards-after-nclat-vindicating-mistry-stand","status":"publish","type":"post","link":"https:\/\/tehelka.com\/is-settlement-between-tata-sons-cyrus-on-the-cards-after-nclat-vindicating-mistry-stand\/","title":{"rendered":"Is settlement between Tata Sons, Cyrus on the cards after NCLAT vindicating Mistry stand?"},"content":{"rendered":"

\"\"<\/a>Though the National Company Law Appellate Tribunal (NCLAT) has\u00a0reinstated ousted chairman Cyrus Mistry and held as illegal the appointment of N. Chandrasekaran as his successor, it has actually\u00a0paved the way for a settlement between the two warring sides.<\/span><\/p>\n

According to the legal experts the order has also observed that both parties must take steps to \u201ccreate a healthy atmosphere to remove the mistrust between the two groups.\u201d It is in this context that insiders say that Cyrus Mistry is unlikely to return to Tata Sons Bombay House. One reason is that Tata Sons has already made it known that it is seeking remedial measures against the order.\u00a0 Other is Mistry wanted to\u00a0prove that Tata Sons was in the wrong and he has proved it.<\/span><\/p>\n

The NCLAT observed that Mistry was ousted as chairman in haste ignoring the interests of minority shareholders. Mismanagement at Tata Sons was another reason for the orders.\u00a0 Mistry was\u00a0the sixth and youngest chairman of Tata Sons and had taken over after Ratan Rata retired in December 2012. He is the younger son of Indian billionaire and construction magnate Pallonji Mistry.\u00a0 The Mistry family holds 18.5 per cent stake in the company and comprises the largest block of shares held by a single party.\u00a0 Current Board of\u00a0Tata Sons consists of Amit Chandra, Farida Khambata (who did not vote to remove Mistry), Venu Srinivasan, Ajay Piramal, Bhaskar Bhat and Ralf Speth.\u00a0<\/span><\/p>\n

In a statement after the verdict, Mistry said \u201cThe outcome of the appeal is a vindication of my stand taken when the then board of Tata Sons, without warning or reason removed me, first as the executive chairman, and subsequently as a director of Tata Sons.\u201d \u00a0\u201cToday\u2019s judgment is not a personal victory for me, but is a victory for the principles of good governance and minority shareholder rights,\u201d he added.\u00a0\u00a0 \u201cI believe it is now time that all of us work together for sustainable growth and development of the Tata Group, an institution that we all cherish,\u201d Mistry said in his statement.<\/span><\/p>\n

According to the statement issued by Mistry \u201cFor the Tata Group to prosper as an institution, it is important that the management of individual companies, their Boards, the management of Tata Sons, the Board of Tata Sons and the shareholders of Tata Sons, all work harmoniously within a robust governance framework, that in substance and form, protects the rights of all stakeholders, including shareholders, investors and the Tata Groups employees, who represent the strongest asset of the Group.\u201d<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

Though the National Company Law Appellate Tribunal (NCLAT) has\u00a0reinstated ousted chairman Cyrus Mistry and held as illegal the appointment of N. Chandrasekaran as his successor, it has actually\u00a0paved the way for a settlement between the two warring sides. According to the legal experts the order has also observed that both parties must take steps to […]<\/p>\n","protected":false},"author":6,"featured_media":300207,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[167],"tags":[3118,12233,3513],"_links":{"self":[{"href":"https:\/\/tehelka.com\/rest-api\/wp\/v2\/posts\/318068"}],"collection":[{"href":"https:\/\/tehelka.com\/rest-api\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/tehelka.com\/rest-api\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/tehelka.com\/rest-api\/wp\/v2\/users\/6"}],"replies":[{"embeddable":true,"href":"https:\/\/tehelka.com\/rest-api\/wp\/v2\/comments?post=318068"}],"version-history":[{"count":1,"href":"https:\/\/tehelka.com\/rest-api\/wp\/v2\/posts\/318068\/revisions"}],"predecessor-version":[{"id":318069,"href":"https:\/\/tehelka.com\/rest-api\/wp\/v2\/posts\/318068\/revisions\/318069"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/tehelka.com\/rest-api\/wp\/v2\/media\/300207"}],"wp:attachment":[{"href":"https:\/\/tehelka.com\/rest-api\/wp\/v2\/media?parent=318068"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/tehelka.com\/rest-api\/wp\/v2\/categories?post=318068"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/tehelka.com\/rest-api\/wp\/v2\/tags?post=318068"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}