New Delhi: Ratan Tata has written a sharply worded letter to shareholders seeking their support to oust “disruptive” Cyrus Mistry as director from group companies. Tata has cited Mistry’s “hostility” towards Tata Sons as a reason for seeking his removal.
“We now seek your support of the resolution that Tata Sons has moved in the forthcoming Extraordianry General Meetings (EGM) of our companies, for the removal of Mr. Cyrus Mistry as Director.”
Cyrus Mistry was sacked as Chairman of Tata Sons on October 24 in a boardroom coup because the board “lost confidence in him and his ability to lead the Tata Group,” the letter said.
Ratan Tata further claims in the letter that several attempts to remediate the situation went unheeded and Mistry was offered an opportunity to step down voluntarily, which he rejected.
Ratan Tata has also sought to allay shareholder concerns raised by the biggest boardroom battle in recent Indian corporate history. He writes in the letter that the Tata Groups decisions are based on maximising long-term shareholder value, and this will continue to be the case, whether it is non profitable units like Tata Steel Europe or successful entities like TCS or JLR.
The letter has been signed by Ratan Tata.
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