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IN Celebrities ON 29 Oct, 2016
The newspapers and the news sites have been majorly occupied with the ongoing rift between Cyrus Mistry and Ratan Tata. The latter who returned this week to the helm of India's largest conglomerate is searching for a partner who could buy the stake of Tata Sons held by the family of Cyrus Mistry. Where it is said that Mistry's family doesn't plan to sell out its holdings.
There is news of every step going on since the dispute started and here is the new addition where Ratan Tata has revealed the reasons for the rift.
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"The Tata Sons board gives its Chairman complete autonomy to manage opportunities and challenges," to which Mistry failed to comply with.
That he had been warned of Rs 1.18 trillion writedowns, over time, from five unprofitable businesses.
The questions raised were such as Tata's entry into civil aviation, aggressive bidding for the Mundra Power Project, and the conglomerate's persistence with the Nano, which bled the passenger vehicle division of Tata Motors Ltd.
"To emphasize the total lack of corporate governance and to point out the failure on the part of the directors to discharge the fiduciary duty owed to stakeholders of Tata Sons and the group companies."
"It's unfortunate that it is only for his removal that allegations and misrepresentation of facts are being made about business decisions that the former chairman was party to for over a decade in different capacities."
This does not represent the true state of affairs.
As per Shriram Subramanian, founder, and managing director, InGovern Research Services, that Tata Sons are trying to anticipate any legal actions.
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