Cyrus Mistry Ouster: Reasons not Provided in Board Meeting to Avoid Public Battle

The Tata Group has so far refused to divulge why chairman Cyrus Mistry was eased out abruptly on Monday night, but sources inside hint the reason could be lack of communication, which led to a situation where Ratan Tata and Tata Sons were not informed about major business decisions.

A top Tata executive told CNBC-TV18 that the board did not provide Mistry a reason for removing him to avoid a public spat. The executive spoke to the channel on condition of anonymity since he is not authorised to speak to media.

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In the meeting held on Monday the board informed Mistry that they had discussed the matter and had the right to replace him.

When informed of the Board’s decision Mistry sought time to think about it and asked the board what the urgency to replace him was, the executive said.