![]() In a letter to the board, he used the term "shocked beyond words", going on to comment that the move was "unparalleled in the annals of corporate history". Mistry himself was shocked by the swiftness of the removal. Whether they would be absorbed or asked to leave was yet undecided though some reports said the old Tata hands-Mukund Rajan and Harish Bhat - might be absorbed, while the others would be nudged to go. Rajan, Nirmalya Kumar and Harish Bhat - would be disbanded with immediate effect. One was that the GEC - which comprised Madhu Kannan, Mukund Rajan, N.S. Later, once they had all left, it was increased once again by Tata Sons.)īy the evening of October 24, more details had emerged. ![]() (And even that was more deftly handled: 'retiring' the satraps by bringing down the retirement age. The last time the group witnessed controversial exits was a few years after Ratan Tata had taken charge as chairman of Tata Sons for the first time in 1991 and had his famous battle with the group satraps of that era-Russi Modi, Darbari Seth, Ajit Kerkar and Nani Palkhivala. First, in the Tata Group, exits were generally not so messy - or at least had not been in a long time. There were some things that particularly stood out in the board's move. Perhaps he took the advice too literally. At the time of the handover, Tata had exhorted Mistry to be "his own man". It was an extremely abrupt dismissal of someone who had been picked and anointed as Ratan Tata's successor after a year - long search, and then worked closely with him for almost a year before taking over formally as chairman on December 29, 2012. The terse announcement of Mistry's removal immediately after the board meeting sent shock waves through the corporate community. Until a successor was found, Ratan Tata would be interim chairman though a time limit of four months was set for the committee to find a new chairman. As it turned out, only two board members abstained, while all others voted in favour of removing him. Mistry either needed to resign on his own - or he would be removed by a board resolution brought in under "any other business" at the meeting. Before the board meeting, all the members had been briefed, and even legal opinion sought about the move. What he was unaware of was that the Tata Trusts- read Ratan Tata - had been preparing for this event for at least a couple of months, if not more. Mistry apparently chose to take his chances by presenting his side of the story at the board meeting. ![]() Sources also say that Mistry should have understood his time was up because it had been communicated to him almost a year ago by the trusts that he was not living up to their expectations. Sources say that he was offered an honourable way out if he resigned immediately, though whether this offer was actually made could not be independently verified. By all accounts, Mistry was first told of the decision to remove him by a board member of Tata Sons on Sunday, October 23. ![]()
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |