Indian Tribunal reinstates Cyrus Mistry as Chairman of Tata Sons |
The National Company Law Appellate Tribunal, in a dramatic turn of events, reinstated Cyrus Mistry as executive chairman of Tata Sons, terming his removal in October 2016 as illegal. The NCLAT also set aside Tata Sons` decision to convert itself into a private company and accepted Mistry`s argument that Tata Sons and its directors and shareholders acted in a prejudicial and oppressive manner to minority shareholders. Tata group shares fell after the ruling with Tata Motors, the company with the biggest debt, falling nearly 3%, while Tata Global Beverages, fell 4% and Indian Hotels slipped 3%. According to an official statement by Tata Sons, the company said that the NCLAT order even appears to go beyond the specific reliefs sought by appellant,” and that firm is likely to appeal the order. The NCLAT judgement threatens to create more uncertainty for the group as it has immediately restored Mistry`s directorship in Tata Sons and the three group companies from which he was sacked three years ago. The tribunal also said that the reinstatement of Mistry as executive chairman Tata Sons will be operational after four weeks. Tata Group is one of India`s oldest and biggest conglomerates with interests in sectors including technology, steel and automobiles. The clash between Mistry and Ratan Tata has been one of the most high profile and publicly fought corporate battles in the country.
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