Cyrus Mistry, who was removed as the chairman of the Tata Sons on Monday may challenge the decision in Bomabay High Court reports NDTV. Quoting sources who were privy to the decision NDTV said that the decision to remove the Chairman was not on the agenda of the director board meeting and was taken as ‘any other item’ category.
According to NDTV Mistry challenged the decision to take up the matter with out prior notice. But the other director board members said that they have legal opinion in their favour to take up the issue with out notice. This led to a heated debate in the board room. According to report in the nine member board, six voted in favour of his removal and two abstained. Mistry refused to be part of the process.
Though removed as Chairman, Mistry will continue be in the director board of Tata Sons.
After removing Mistry the director board has appointed a selection committee to find out a new chairman.
The selection committee include Ratan Tata, Venu Srinivasan, Amit Chandra, Ronen Sen and Lord Kumar Bhattacharyya. The committee has been mandated to complete the selection process in four months.
The turnover of India’s largest conglomerate dropped to $103 billion in last fiscal from $103 billion in the previous year. Net debt of the company rose from $24.5 in March 2016 from $23.4 billion year ago, Cyrus Pallonji Mistry was appointed as the chairman of India’s biggest conglomerate on on 28 December 2012 Mistry is a Irish-Indian businessman who was the six chairman of Tata groups