2. Who is Ratan Tata?
Ratan NavalTata is an Indian industrialist and former
chairman of Tata Sons. He was also the chairman of the
Tata Group from 1990 to 2012, serving also as interim
chairman from October 2016 through February 2017.
He continues to head its charitable trusts.
Born: 28 December 1937, Mumbai
Education: Harvard Business School
Organizations founded:Tata Housing Development
Company,Tata Docomo,TataTeleservices
Occupation: Industrialist
Title: Chairman Emeritus,Tata Sons andTata Group
3. About Tata Sons
Type Private
Founded 1868
Founder Jamsetji Tata
Headquarters Mumbai, Maharashtra,India
▪ Tata Sons Private Limited is the holding company of the
Tata Group
▪ Tata Sons Private Limited was established as a trading
enterprise in 1868,
▪ Engaged primarily in the lucrative opium and tea trade
with Mongolia and China
4. About Tata Group
Type Private
Industry Conglomerate
Founded 1868,
Founder Jamsetji Tata
Headquarter Bombay House, Mumbai,Maharashtra
Products Automotive, Airlines, IT Services,
Hospitality, Steel,Telecom and so on
Owner Tata Sons
Chairman Natarajan Chandrasekaran at present
time.
Cyrus Mistry (2012-2016)
5. Who is Cyrus Mistry?
Cyrus Mistry, son of Pallonji Mistry who is the owner of the
Shapoorji Pallonji group and one of the biggest stakeholder in
theTata group.
He was appointed to the top position in 2012.
SHARE HOLDER NO OF SHARES SHARE-HOLDING
PERCENTAGE
Shapoorji Pallonji G 108 0.026723
Sterling Investment 37120 9.18489
Cyrus Investment
(Shapoorji Pallonji G)
37120 9.18489
RatanTata 3368 0.8337
Sir DorabjiTataTrust 113067 27.97705
Sir RatanTataTrust 95211 23.5588
6. What Had Happened ?
On October 24, 2016, Cyrus Mistry was removed from
his post of Chairman of Tata Sons by the board.
Mistry, who was at one time a protege ofTata Sons
Chairman Executive RatanTata, was sacked both as
Executive Chairman and Director.
Following his ouster, Mistry had moved the Mumbai
bench of the National Company LawTribunal (NCLT)
challenging his removal and said that-
The majority shareholder ofTata Sons, theTata Group
was indulged in oppression of minority shareholders of
the group.
7. NCLT DECISION
National Company LawTribunal
In its 2017 judgment, the NCLT upheld Mistry’s
removal from as Executive Chairman and Director and
had observed that
Just because the board of Tata Sons had held a board
meeting at short notice or included the item agenda (that
removed Mistry from his post at the top) at the last
minute, it could not be termed as a fraud.
8. In December 2019, the NCLAT (National Company Law
AppellateTribunal) had reinstated Cyrus Pallonji Mistry
to the position of Executive Chairman of Tata Sons and
Director of theTata Group of companies for the
remainder of his tenure.
It had also termedTata Group’s decision to convert from
a public limited company to a private company was
“prejudicial and oppressive to the minority members and
depositors” and, therefore, illegal.
9.
10. Ratan Tata wins the fight against
Cyrus Mistry in SC
What Has Happened?
The Supreme Court allowed all appeals by theTata
Group and upheld its decision to sack Cyrus Pallonji
Mistry as the chairman and executive director of the
group.
The judgment brings down curtains on one of the ugliest
publicly- fought boardroom wars in the history of
Corporate India.
