In response to a NCLAT order which reinstated him as the executive chairman of Tata Sons, Cyrus Mistry said it is not a personal victory for him, but a victory for good governance and minority shareholder rights. The appellate tribunal has reinstated Mistry on the Tata Sons board by setting aside an NCLT order dated July 9, 2018. Mistry can be restored as executive chairman after four weeks.
"The outcome of the appeal is a vindication of my stand taken when the then board of Tata Sons, without warning or reason removed me, first as the executive chairman, and subsequently as a director of Tata Sons," Mistry said in his statement.
Mistry, the sixth executive chairman of Tata Sons, was fired in October 2016 over alleged non-performance. Since then, Mistry has been engaged in bitter legal battle with Tata Sons and its patriarch Ratan Tata.
After the NCLAT order in his favour, Mistry called for harmony among managements of various companies under Tata Group for the conglomerate to prosper. I believe it is now time that all of us work together for sustainable growth and development of the Tata Group, an institution that we all cherish, Mistry stated.
Here is the full text of Mistry's statement after the NCLAT order revoking his termination from Tata Group:
Today's judgment is not a personal victory for me, but is a victory for the principles of good governance and minority shareholder rights. For over fifty years, the Mistry family, as the significant minority shareholder of Tata Sons, has always endeavoured to play the role of a responsible guardian of an institution that the entire nation is proud of.
The outcome of the appeal is a vindication of my stand taken when the then board of Tata Sons, without warning or reason removed me, first as the executive chairman, and subsequently as a director of Tata Sons.
My endeavour as Executive Chairman had always been to establish a culture and processes that promote effective board governance to create long term stakeholder value, sustainable profits and growth.
For the Tata Group to prosper as an institution, it is important that the management of individual companies, their Boards, the management of Tata Sons, the Board of Tata Sons and the shareholders of Tata Sons, all work harmoniously within a robust governance framework, that in substance and form, protects the rights of all stakeholders, including shareholders, investors and the Tata Groups employees, who represent the strongest asset of the Group.
I believe it is now time that all of us work together for sustainable growth and development of the Tata Group, an institution that we all cherish.