On Monday, the NCLT (National Company Law Tribunal) has dismissed Cyrus Mistry’s petition for his illegal removal as Tata Sons’ Chairman. The NCLT’s Mumbai Bench was in favour of Tata Sons and said that the board of directors are competent to remove directors. As Tata Sons board and its members lost confidence in him therefore he was removed as per NCLT.
Mr Mistry said in his petition that his removal was illegal as Tata Sons’ chairman. He also mentioned about the dominance of minority shareholders, mismanagement at Tata Sons, a breakdown of corporate governance and excessive interference by Tata Trusts
As per the bench, Mr Mistry was ejected as the board and majority of its members lost confidence in him as he leaked certain crucial information about the company to the I-T department, media and it came out openly in public against the companys’ shareholders and its board.
After Ratan Tata announced his retirement in 2012, he took over as the Chairman of the Tata group of the salt to software. He was the sixth chairman of Tata Sons and was removed from his position in October 2016. Ealier on February 6, 2017, he was also removed as director on the board of the holding company.
N Chandrasekaran took charge as chairman of Tata Sons in February 2017 who earlier headed TCS after the ejection of Mr Mistry.