Tata Sons Replaces Cyrus Mistry as Chairman, Ratan Tata is Interim Boss Monday Oct 24,2016

Cyrus Mistry sacked, Ratan Tata named interim Chairman of Tata Sons

 

Tata Sons on Monday Oct 24,2016 announced that its Board has replaced Cyrus P Mistry as Chairman of Tata Sons at a meeting held in Mumbai. The board has named Ratan Tata as interim chairman of the over $100 billion salt-to-software conglomerate.

It has also constituted a selection committee to choose a replacement within four months. The selection committee comprises Ratan Tata, Venu Srinivasan, Amit Chandra, Ronen Sen and Lord Kumar Bhattacharyya.

"Tata Sons today announced its board has replaced Mr Cyrus P Mistry as Chairman of Tata Sons. The decision was taken at a board meeting heldin Mumbai today," a Tata Sons statement said. "The committee has been mandated to complete the selection process in four months," it added.

Tata Sons Board replaces Mr. Cyrus P. Mistry as Chairman, Selection Committee set up for new Chairman https://t.co/yy9H6k46Kv

— Tata Group (@TataCompanies) October 24, 2016

Tata Sons is the main holding company of the group.

Cyrus P Mistry was chosen as Tata's successor in November 2011 and was appointed Deputy Chairman of Tata Sons, whose board he had entered in 2006. He was made chairman on the basis of his representation from Shapoorji Palonji, the largest shareholder in Tata Sons

There were no reasons given for the change of leadership of the man who was brought in with much fanfare but it is believed that Tata Sons was unhappy with Mistry's approach of shedding non-profit businesses, including the conglomerate's steel business in Europe, and concentrating only on cash cows.
“The Board in its collective wisdom and on the recommendation of the principal shareholders (Tata Trusts) decided that it may be appropriate to consider a change for the long-term interest of Tata Sons and the Tata Group,”said a Tata group spokesman.