In a four-page letter addressed to all stakeholders, Tata Sons has appealed to Tata Group shareholders, seeking their support to remove Cyrus Mistry from the board of all group companies. This letter comes just two days before the first of six, extraordinary general meetings convened by various Tata Group companies.
Tata Sons has made its case against Mistry arguing that he misled the Selection Committee set up in 2011 by making lofty statements about his plans for the Tata Group. The letter states that none of the elaborate management structure plans for managing the group proposed by Mistry were given effect.
Mistry’s failure to put his shareholding in Shapoorji Pallonji & Company and the other Shapoorji Pallonji Group entities in an arms-length Trust has caused grave concerns regarding Mistry’s ability to lead the Tata Group devoid of personal conflicts, the letter states.
The Tata Group has also raised concerns regarding Tata Sons’ financial performance with Mistry at the helm and has alleged that he weakened the management structures of Tata companies, acting contrary to his fiduciary duties.
The letter also states that Mistry failed to live up to the challenges that the various Tata companies were facing during his tenure as Tata Sons’ chairman.
It has always been Tata’s policy to tackle difficult situations and turn them around but instead he has only taken the easy option of taking large amounts of write offs to huge detriment of the shareholders and blaming it all on the past management, while doing little to fix the challenges faced by certain companies.Tata Group’s letter to all stakeholders of Tata Companies
Here is a reproduction of the Tata Sons’letter to all stakeholders:
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