Tata Sons has hit out at Cyrus Mistry after the group was served a petition under Sections 241 and 242 of the Companies Act before the National Company Law Tribunal.
In a statement, Tata Sons vowed to contest all the allegations:
This afternoon Tata Sons Limited was served with a Petition under Sections 241 and 242 of the Companies Act before the National Company Law Tribunal. We understand that the Petition has been filed by investment companies of Mr. Cyrus Mistry. Tata Sons is in consultation with its lawyers and will contest the allegations therein.
Tata Sons reiterates that it has followed the highest standards of corporate governance in its operations and views the Petition as an unfortunate outcome of the situation arising from Mr. Mistry’s complete disregard of the ethos of the Tata Group and Jamsetji Tata. Despite, Mr. Mistry’s recent assertions that it is not a personal issue, it is evident that it always has been for him a personal issue which reflects his deep animosity towards Mr. Ratan N. Tata.
Mr. Mistry was the Chairman of Tata Sons for almost 4 years and it is surprising that he is now making allegations on activities of Tata Sons after doing little to address them, in his tenure both as a Director (since 2006) and a Chairman since 2012. Mr. Mistry’s removal as Chairman from the Board of Tata Sons Ltd was approved by an overwhelming majority of the Directors and it is unfortunate that Mr. Mistry has not been able to graciously accept the decision of the very same Board that appointed him.
Tata Sons and Cyrus Mistry continue to attack each other:
Erstwhile Tata Group Chairman Cyrus Mistry today said that there were chances of a truce rand said that his fight is for the larger issue of governance. He also said that he won’t give up his family’s 18.5 % holding in the $103-billion empire.
Several newspapers quoted him as saying that:
“I will fight for that. I have fought for that… We have been there for 50 years, its not one day or two days. This is not about a business group fight. It is not about those type of things. If that was the situation, I would like to sit in the position. That’s why I have removed myself from the position, because it is not me looking for position or power.”
