Mistry also indicated that he could take legal or third-party arbitration action against the Tata Group.
New Delhi: Ousted Tata Group chairman Cyrus Mistry is ending his battle to remain on the board of various Tata Group companies.
On Monday, Mistry announced his resignation from all listed Tata Group Companies, but said that he would his “campaign” to “secure the larger interests of the Tata Group” would shift to a bigger platform.
While Mistry was unceremoniously sacked as chairman of Tata Sons in late October, he still remained the chairman of the boards of several group firms – a continuing arrangement that brought into sharp focus the role of the independent directors of various Tata Group firms.
In November for instance, at the board meetings of two other Tata Group firms – Indian Hotels Co Ltd (IHCL) and Tata Chemicals – the independent directors of the firms came out in strong support of Mistry; a move that has caused a certain amount of public consternation for interim chairman Ratan Tata.
This back-and-forth struggle, which threatened to spill over to extraordinary general shareholder meetings of five Tata companies starting in December, is now over with Mistry’s resignation. “It is time to shift gears, up the momentum and be more incisive in securing the best interests of the Tata group,” Mistry said in a letter to shareholders and board of Tata Sons.
Mistry also indicated that he could take legal or third-party arbitration action against the Tata Group. “It is with this thought in mind that I have decided to shift this campaign to a larger platform, one where the rule of law and equity is upheld,” Mistry said.
“I had initially not thought that one would need to seek an external forum to adjudicate issues that never should have risen in the first place. By removing myself from the general meetings, I reinforce my consistent position that this is not a fight for position but a fight to more effectively secure long-term reform to keep the Tata Group on a sustainable path.”