In a sudden and surprising development, the Tata group led by holding company Tata Sons announced in a media statement that Cyrus Mistry is being replaced as chairman and that former chairman Ratan Tata will take over as interim chairman.
The Tata Sons media statement said:
“Tata Sons today announced that its Board has replaced Mr. Cyrus P. Mistry as Chairman of Tata Sons. The decision was taken at a Board meeting held here today. The Board has named Mr. Ratan N. Tata as Interim Chairman of Tata Sons.
The Board has constituted a Selection Committee to choose a new Chairman. The Committee comprises Mr. Ratan N. Tata, Mr. Venu Srinivasan, Mr. Amit Chandra, Mr. Ronen Sen and Lord Kumar Bhattacharyya, as per the criteria in the Articles of Association of Tata Sons. The committee has been mandated to complete the selection process in four months.”
Also Read: From Ratan Tata To Cyrus Mistry And Back
Mistry was appointed as chairman of Tata Sons in December 2012 after Ratan Tata turned 75.
Meanwhile a Tata Trust spokesperson told BloombergQuint
The Board in itscollective wisdom and on the recommendation of the principal shareholderdecided it may be appropriate to consider a change for the long term interestof Tata Sons and Tata Group. The selection committee has been constituted. The committee has been mandated to complete the process in 4 months. There is nochange at the levels of CEOs in the operating companies.Tata Trust Spokesperson
The various Tata Trusts combined are the principal shareholders of Tata Sons and own 66 percent of the company. The Tata Trusts' website says
“The Trusts own two-third of the stock holding of Tata Sons, the apex company of the Tata group of companies.”
The website also describes Ratan Tata as ‘the Chairman of the Tata Trusts (comprising Sir Ratan Tata Trust and Allied Trusts, and the Sir Dorabji Tata Trust and Allied Trusts)‘.
Also Read: Tata Sons Replaces Mistry With Ratan Tata In ‘Bizarre' And ‘Shocking' Move
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