Cyrus Mistry sacked in Tata Sons churn: Is this the beginning of Ratan Tata 2.0?

[h=1]Big shake up !! Let us wait and watch the happenings…[/h][h=1]Cyrus Mistry sacked in Tata Sons churn: Is this the beginning of Ratan Tata 2.0?[/h]Cyrus Mistry was shown the door at Tata Sons on Monday, after about four years at the helm as the chairman. A company spokesperson merely said this decision was in the long term interest of all shareholders, maintaining a deafening silence over the actual reasons for Mistry’s sudden and unceremonious exit. There was no mention of Mistry’s contribution to Tata Sons’ growth during his stint, not even the customary wishes about any future endeavour he may undertake. Ratan Tata, who had passed the baton to Mistry in 2012, has been brought back as the interim Chairman, till a successor is anointed. Remember, Tata Trusts still hold a majority in Tata Sons; Tata Sons is the holding company of the Tata group. So Ratan Tata, who is the Chairman of Tata Trusts, retains a clear say in appointing the chairman. It is clear from the terse statement sent out by Tata Sons that Mistry’s exit has been less than harmonious and it won’t be a surprise if the Mistrys do not take this ignominy lying down.

Read more at: http://www.firstpost.com/business/c...-the-beginning-of-ratan-tata-2-0-3069874.html

Not All OK at Tata: What We Know and What We Don’t Know About Cyrus Mistry’s Sacking

[h=3]Multiple analyses of Mistry’s tenure don’t paint a glowing picture. The Shapoorji Pallonji group is reportedly against the move and claims that his sacking is illegal.[/h] [h=3]New Delhi: Tata group chairman Cyrus Mistry is out. On Monday, in a surprise development, the group led by holding company Tata Sons announced that Ratan Tata would take over as interim chairman for the next four months.[/h]“The board has constituted a selection committee to choose a new chairman. The committee comprises Ratan N. Tata, Venu Srinivasan, Amit Chandra, Ronen Sen and Lord Kumar Bhattacharyya, as per the criteria in the Articles of Association of Tata Sons,” the group’s statement says.

Cyrus Mistry’s family and his family’s business empire, the Shapoorji Pallonji Group (which is the single largest stakeholder in Tata Sons), have reportedly opposed the move. According tomedia reports, the Shapoorji Pallonji group is “claiming Cyrus Mistry’s removal is illegal” and that minimum 15 days notice is needed.

Read more at: http://thewire.in/75559/not-ok-tata-know-dont-know-cyrus-mistrys-sacking/

Not All OK at Tata: What We Know and What We Don’t Know About Cyrus Mistry’s Sacking

[h=3]Multiple analyses of Mistry’s tenure don’t paint a glowing picture. The Shapoorji Pallonji group is reportedly against the move and claims that his sacking is illegal.[/h][h=3]New Delhi: Tata group chairman Cyrus Mistry is out. On Monday, in a surprise development, the group led by holding company Tata Sons announced that Ratan Tata would take over as interim chairman for the next four months.[/h]“The board has constituted a selection committee to choose a new chairman. The committee comprises Ratan N. Tata, Venu Srinivasan, Amit Chandra, Ronen Sen and Lord Kumar Bhattacharyya, as per the criteria in the Articles of Association of Tata Sons,” the group’s statement says.

Cyrus Mistry’s family and his family’s business empire, the Shapoorji Pallonji Group (which is the single largest stakeholder in Tata Sons), have reportedly opposed the move. According tomedia reports, the Shapoorji Pallonji group is “claiming Cyrus Mistry’s removal is illegal” and that minimum 15 days notice is needed.

Read more at: http://thewire.in/75559/not-ok-tata-know-dont-know-cyrus-mistrys-sacking/

[h=1]Day after ousting Cyrus Mistry, Tatas file caveats against him and his firm[/h][h=2]The Tata move comes a day after a Tata Sons board announcement said Mistry would be immediately replaced by Ratan Tata, for an interim period of four months.[/h]
Moving swiftly to ensure that no ex-parte order is passed in case ousted Tata Sons chairman Cyrus Mistry decides to move court, the Tata group Tuesday filed caveats against Mistry and his firm Cyrus Investment Pvt Ltd at various legal forums.

The caveats have been filed by Tata Sons, Ratan Tata and Sir Dorabji Tata Trust in the Bombay High Court and the National Company Law Tribunal, sources familiar with the development said. The Tata move comes a day after a Tata Sons board announcement said Mistry would be immediately replaced by Ratan Tata, for an interim period of four months.

Read more at: http://indianexpress.com/article/bu...n-tata-caveats-national-company-law-tribunal/

[h=1]Ratan Tata breaks silence on Cyrus Mistry[/h]Mumbai: A day after Tata Sons removed Cyrus Mistry as its chairman, a meeting with CEOs of the salt-to-software conglomerate and Ratan Tata took place at the group's head office Bombay House.

Speaking on Mistry's ouster, Ratan Tata told a television channel that "It is not an ownership battle."

Tata Sons has enlisted senior advocates like Harish N Salve and Abhishek Manu Singhvi, including former Solicitor General Mohan Parasaran, anticipating legal trouble over the sudden ouster of Cyrus Mistry as chairman, sources said.

Source says, unless case is filed by Mistry or Shapoorji and Pallonji Group's legal team, the majority shareholder in the Tata Group, Tata group would not react. Till now, no case has been filed in Bombay High Court, but legal consultations are going on at both ends.
In the meantime, an official spokesperson for Shapoorji Pallonji Group clarified, "Neither the SP Group nor Cyrus Mistry have made any statement yet. While the circumstances are being studied, there is no basis to media speculation about litigation at this stage. As and when a public statement becomes necessary, it would be made."

On a day Cyrus Mistry was ousted as the Chairman of Tata Sons, the Group Executive Council (GEC) set up by him has been disbanded.

Read more at: http://newstodaynet.com/business/ratan-tata-breaks-silence-cyrus-mistry

Most deserving is TCS Chandra

Is Chandra frontrunner for the top job?

Our Bureau

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  N Chandrasekaran, CEO & MD, TCS; Ralf Speth, CEO, JLR

TCS chief, JLR boss Ralf Speth appointed Additional Directors on Tata Sons Board

Mumbai, Oct. 25:

Tata Sons has appointed Ralf Speth, CEO of Jaguar Land Rover, and N Chandrasekaran, CEO & Managing Director, Tata Consultancy Services (TCS) as Additional Directors on the Tata Sons Board.

While this may seem as just another move by the Tata Group to bolster its position on the board, analysts tracking the company say that the elevation could be an indication of Chandrasekaran being the frontrunner for the position of Tata Sons Chairman.
Announcing the appointments, Ratan Tata, Interim Chairman, Tata Sons, said: “This is in recognition of their exemplary leadership in their companies.”
Company insiders said that good leadership is what the group needs and the fact that Tata has recognised the leadership of Chandrasekaran is probably an indication of what’s to come. “I am humbled by this honour and I look forward to contributing to the board,” Chandra said in a statement.

Humble beginning

Chandra has been a rockstar performer for the Group, making TCS the jewel in Tata Sons’ crown. Born in an agricultural family, his father, Srinivasan Natarajan, was a lawyer by profession, but managed the family farm.
Chandra studied in a Tamil-medium government school initially and graduated from the Coimbatore Institute of Technology with a degree in Applied Sciences.
He has a postgraduate degree in computer applications from the Regional Engineering College, Tiruchi.
From there, he joined TCS in 1987, and moved up the ladder to become its CEO and Managing Director. In addition to taking TCS to higher glory, Chandra has also often been the flag bearer for the Indian IT sector in many international forums.

According to other sources close to the Tata camp, while Chandra may be in the running, the selection committee will also look outside the group.
“The selection committee will follow a process. It was done last time also, before Cyrus Mistry was appointed. A number of external candidates were looked at then and this time also the selection panel will do the same before deciding,” said a source.
(This article was published on October 25, 2016)

http://www.thehindubusinessline.com...karan-join-tata-sons-board/article9267788.ece

Well, replacement of Cyrus Mistry by Tata Group, came as a surprise to me. He is the son of Pallonji Mistry of Shapoorji Pallonji group of architects and builders, who have designed and built the famous Al Alam Palace in Muscat and Al Jumeirah Lake towers in Dubai. In spite of one of the best professionally administered group, Tatas still like to have their family hold !

Since I have not ventured investing in shares in my life ( reason is simple - no money), my views are just academic !

Brahmnyan,
Bangalore.

The issue is that Tatas have a culture of forthrightness that they have promoted and try to be employers who have the best practices.They also contribute to charity a lot.

In tatasons, tatatrusts dividends meant for charity was denied by pallonji mistry.Tatatrusts hold 20% of Tatasons.

Only two tata companies , TCS and JLR were making profits. Others performance was not satisfactory.

Thirdly Pallonji brought his own team of core personnel to run the company and not keeping large shareholders tatas informed of developments.

This sent alarm bells in the company.

Now both TCS and JLR chief have been added to board of directors. Pallonjis team has been disbanded.

The other side of the story...Read the mail sent by Cyrus Mistry on 25th October'16

Why Ratan Tata removed Cyrus Mistry

An alternate perspective on what could have led to the removal of Cyrus Mistry
By Team PGurus -
October 26, 2016


The real reason Cyrus Mistry was ousted
See a copy of the letter Cyrus Mistry wrote to the Directors of Tata sons, attached at the end of this post. A must read!

While mainstream media is beating around the bush on the tussle between Ratan Tata and Cyrus Mistry, senior Tata executives started revealing the real reasons behind the unpleasant situation. According to the senior executives, Ratan Tata started annoying Cyrus Mistry for the past two years and the real reasons are Cyrus Mistry’s actions to undo the “bad decisions” taken by Ratan Tata in the acquisition of foreign companies, illegalities in floating and funding airline companies like Vistara and Air Asia and non-viable actions in Tata Steel and the failed Nano project.The last provocation was Mistry’s decision to sell off Tata Steel’s acquisitions in Europe. According to Tata executives, Cyrus was airing his opinion on Ratan Tata’s “follies” in non-viable acquisitions across the globe. For the past two years, Ratan Tata and his trusted man R K Krishna Kumar were monitoring the moves Cyrus made with suspicion, and the senior executives vouch the displeasure was evident in several internal mails.
Cyrus in several board meetings expressed illegalities and bad decisions taken by Ratan Tata in covertly supporting and funding Air Asia and operating Vistara. The Tata insiders say, Cyrus openly reiterated that the Public Interest Litigation (PIL) filed by senior BJP leader Subramanian Swamy would expose the wrongdoing of Ratan Tata for backing Air Asia. He cited several violations of Civil Aviation and Foreign Investment Promotion Board (FIPB) policies in the starting of Vistara and backing of Air Asia. According to insiders, Cyrus once opined that Ratan Tata’s madness to aviation is going to expose the group’s illegalities committed. He said he would use his prerogative as Tata Sons head to undo Ratan Tata’s bad decisions.
From Day 1, Cyrus was sceptical about the Nano project and his fears came true after the Supreme Court’s verdict on Singur. Ratan Tata would sometime lose his cool on Cyrus observations on the failed Nano project, it is alleged. Many old loyalists of Tata, led by Krishna Kumar had ignited the tussle, say senior executives.Ratan Tata has the habit of buying hotels, wherever he spent vacations and these unstudied acquisitions across the globe based on his fancy had affected the balance sheets of Tata’s hotel business. Many hotels acquired abroad became a financial disaster, say the top executives, who wish to remain anonymous.
The decision to sell the UK’s steel operations may have been the last straw, according to the officials. It is widely believed that Ratan Tata and Krishna Kumar apprehended that Cyrus was going to undo several of their decisions in Tata Steel, Tata Chemicals, Tata Motors and Civil Aviation sectors. This led to the unceremonious exit of Cyrus Mistry, vouch senior Tata executives, citing several internal emails of bickering messages for the past two years.
The market has not liked the exit of Cyrus. Tata stocks are down and perhaps the market knew of the internal rumblings in the Tata group. The last word has not been said about this. Stay tuned.
Just as this post was going online, we came across a copy of a letter by Cyrus Mistry to the Directors of Tata Sons and the same is shown below:

Cyrus Mistry's Letter to Directors of Tata Sons Oct 25, 2016 by PGurus on Scribd

https://www.pgurus.com/ratan-tata-removed-cyrus-mistry/

[h=1]
It appears that there are umpteen number of legal options open to both the parties....

Let us watch as to who takes the advantage....!!

What are the legal options available with Cyrus Mistry to counter Tata's decision[/h]


Cyrus Mistry’s sudden ouster from his post as Chairman of Tata Sons poses a number of interesting legal questions. As the Chairman of Tata Sons, Mistry has certain rights under the Company’s Articles of Association as well as the Companies Act, 2013. Although the Economic Times reported that Mistry was not going to take any legal action against the board’s decision, a chary Tata Trusts has filed a number of caveats with Company Law Board to ensure that an ex-parte order is not passed against them. This begs the question as to what Mistry and ShapoorjiPallonji’s legal options are under the current provisions of law.

Read more at: http://www.firstpost.com/business/w...mistry-to-counter-tatas-decision-3073976.html

Mistry will not take this low...He will hit back with a vengeance as is evident in the 5 page letter which is now publicized

[h=1]Bourses seek clarification from Tatas on Mistry letter[/h]October 26, 2016 20:14

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Markets regulator Sebi has begun looking into the high profile Tata-Mistry case for any possible breach of corporate governance norms and listing regulations at various listed companies of the over $100 billion conglomerate.


Besides, stock exchanges, late this evening, sought clarification from many of the group's listed companies on the purported disclosure by ousted Chairman Cyrus Mistry about Rs 1.18 lakh crore possible writedown at the group firms.

"We (Sebi) are taking note of each and every development and will act immediately on any hint of possible violation of corporate governance and listing norms or any other regulation under our jurisdiction," a senior official said.

The Securities and Exchange Board of India is looking into the alleged disclosure made in the purported letter written by Mistry to Tata Sons' board members including about financial and other irregularities as also lapses on the corporate governance front, sources said.

The stock exchanges and the regulator are also keeping a close watch on the price movement and trading activities of over two dozen listed companies of Tata group, which have seen an erosion in value in last two trading sessions after the surprise ouster of Mistry in less than four years of being made chairman of Tata Sons, the main holding company of the group.

The price movement and trading volumes for few days prior to the surprise announcement will also be looked into.

http://news.rediff.com/commentary/2...istry-letter/c1cc0d7236f0e703505f8de5e91e8556

The allegation leveled are very serious...It is a breach of Corporate Governance norms..Let us wait for the drama to unfold....But Ratan Tata is very powerful person...He will not allow the game to slip under for sure!!

Now the appraisal of Mistry is now coming out! Dirty linen washed!

[h=1]5 Ratan Tata plans Cyrus Mistry didn't deliver on[/h] Last updated on: October 27, 2016 09:31 IST
Which were the five businesses Ratan Tata had great hopes for, but his successor failed to deliver?


Ratan Tata had grand plans for five of his businesses for which he expected Cyrus Mistry to deliver.
But Mistry for a variety of reasons, some of them not entirely under his control, failed to realise Tata's vision.
The automotive business: The Tatas weren't able to replicate the success or the hype surrounding the launch of the Nano in 2008.
After Mistry took over, Tata envisioned launching two new passenger vehicles every year. Mistry seemed to have failed miserably.
The Tatas' main launches included a sedan called the Zest and two hatchbacks called the Bolt and the Tiago.
The Zest launched in 2014 has managed an average sale of around 2,000 units a month.
This is way below the Maruti Suzuki Swift Dezire sedan and almost half the numbers of its other competitor, the Honda Amaze.
The launch of the Bolt was also subdued. The Bolt turned out to be little less than a revamped version of the Indica.
The Tiago meanwhile was jinxed from the start.
Tata Motors had christened the car 'Zica.'
But following the outbreak of the Zika disease that caused enlarged foreheads in newborns, Tata Motors had to tweak the launch despite launching an expensive ad campaign with Argentine football legend Lionel Messi.
The car launched in 2016 failed to enthuse buyers despite its affordable price tag.
The defence business: Tata Advanced Systems incorporated in 2007 had been doing good business as an early private sector entrant in the defence industry.
It was making helicopters, heavy lift transport aircraft, trainer jets and Unmanned Aerial Vehicles.
Then Reliance Defence Ltd entered the market in 2015.
This year the Anil Ambani-led defence firm signed a $6 billion agreement for the manufacture of air defence systems for India's defence forces.
Reliance Defence Ltd also took complete control over Pipvav Defence Ltd this year giving it further access to building warships and patrol boats for the Indian Navy.
Reliance's gain was a big loss for the Tatas despite being in the business for a longer time.
The telecommunications business: After DoCoMo completed its stake purchase in Tata Teleservices in 2011, expectations were high for a profitable run.
However, a couple of years after Mistry took over, Docomo decided to call off its partnership with Tata Teleservices.
The company's debt had spiralled to over Rs 24,000 crore (Rs 240 billion), its losses exceeded Rs 6,000 crore (Rs 60 billion) and its net worth eroded.
Then came another jolt.
Dococmo decided to exercise its pre-agreed put option to sell its 26 per cent stake back to the Tatas.
The case turned ugly after Docomo won the case after going to arbitration in London.
Docomo now wants the Tata group's foreign assets to be sold in a bid to make them pay up over $1 billion for its stake sale.
European steel business: Mistry along with his team was put in charge of ensuring profitability of the Tatas' European steel business in 2012.
The steel business was facing severe losses and the prospect of job losses loomed large.
The Tatas were in a precarious position as cutting jobs would have led to complications for their other business interests in the UK.
Mistry failed to turn around the fortunes of the ailing steel business. Global steel prices plunged and the demand from China declined.
Mistry tried to divest steel assets in Germany, France, New Zealand and other nations, but still couldn't get Tata Steel UK Holdings back on track.
The budget hotel business: Ratan Tata had great hopes for his hospitality business.
In an interview with the Tata group's magazine in 2006, he had highlighted the importance of getting into the no-frills hotels business that was accomplished with the launch of the Ginger brand.
However, the Ginger brand failed to live up to its reputation and posted a profit of just over Rs 2 crore (Rs 20 million) in 2014.
The hotel chain hasn't been expanding as was originally envisaged.
Reports suggest that Ratan Tata wanted the hospitality business to move away from an ownership model in a bid to introduce more reasonable tariffs to increase occupancy.
Those plans do not seem to have worked as well as expected under Mistry.

http://www.rediff.com/business/spec...ta-that-mistry-couldnt-implement/20161027.htm

Tata Group to face a USD 18 Billion write down...What will happen to the Group valuation....It is already facing ire of investors for the last 3 days

Maybe it is a clash of egos... ups and downs are there in any business journey; did any previous audit reports highlight such risks before? Presumably not as SEBI is stepping in only now... so it leads to the inference that some kind of mutual back-scratching was allowed, and it was all kept in shrouds.

What a contrast!

Then (4 years back)




Now:



Source:Whatsapp

Uneasy lies the head that wears the crown.
CEOs can not give excuses. At that height it is terribly lonely. Either you win or lose.
When the Board gently prodded Mistry should have hung up his shoes.
The drama is unbecoming of that position.
But some people are like that. They go to their grave kicking and crying.
Figures speak eloquently and tell whether Mistry failed or not and for the world that s all that matters.

TATA hits back at Mistry...Looks to be a long drawn (legal?) battle or a battle for space in people's mind...

[h=1]Tatas: Unforgivable of Mr Mistry to besmirch group's image [/h]ShareComment
October 27, 2016 17:03

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Tata Sons releases statement a day after Cyrus Mistry's explosive email. Tata Sons hits out at Cyrus Mistry for making "unsubstantiated claims and malicious allegations".


Highlights...


Tatas: Cyrus Mistry as executive chairman was fully empowered to lead.

-- Mistry lost board's confidence due to several factors.

-- The Tata Way is not to run away from problems or constantly complain.

-- Matter of regret that communication marked confidential to Tata board made public in an unseemly, undignified manner.

-- Allegations made by Mr Mistry unwarranted not based on facts. Tata Sons board gives its Chairman complete autonomy to manage opportunities and challenges.

-- However, the tenure of the former Chairman was marked by repeated departures from the culture and ethos of the group.


-- It is unforgivable that Mr Mistry has attempted to besmirch the image of the Group in the eyes of the employees. There is a multitude of records to show that the allegations made by Cyrus Mistry are unwarranted.

-- Mistry was fully empowered to lead and it's only after removal that allegations of being lame-duck chairman have been made.


http://news.rediff.com/commentary/2...groups-image/4d582e46be4a6c1a76fdc1fb9c40144b

It would be wise if shapoorji pallonji sell their stakes in Tata sons and move on.

It is only damaging Tata companies.

Both shapoorji and JRD were close to each other.

The next generation should not fight out.

In business families old partners children , siblings of founding parents ,close relations with cross holdings having public spats is becoming common place

A professional manager for these companies would be a better option.