The National Company Law Tribunal (NCLT) in its ruling upheld the removal of Cyrus Mistry as Executive Chairman, saying that it is because the board of directors and majority of shareholders - Tata Trusts - lost confidence in Cyrus as Chairman and not because by contemplating that Cyrus would cause discomfort to Tata, Soonawala and other over purported legacy issues.
The NCLT order added that the board of directors are competent to remove executive chairman and no selection committee recommendation is required before removing him.
In the 368-page order, which was made public on Thursday, the bench also said that Mistry's wrong assumption that he had a free hand to run the affairs of the Tata Group perhaps caused all the problems and that Tata Sons board was "competent" to remove its chairman.
An executive chairman does not enjoy a free hand and cannot assume that majority shareholders and the board would be at his beck and call, the order said.
Highlights of NCLT order in Tata-Mistry case