MUMBAI Dec 11 Tata Sons on Sunday renewed its
appeal to shareholders of Tata group companies to remove Cyrus
Mistry from the board of those companies, saying his presence as
chairman "is likely to lead to fragmentation of the Tata Group".
In a boardroom coup in October, Mistry was ousted as
chairman of Tata Sons, holding firm of the $100 billion Tata
empire, but he remains on the board of some group companies.
Patriarch Ratan Tata is back at the helm temporarily, and a
public power struggle has since ensued between the two sides.
The letter comes days ahead of key meetings at six group
companies, including Tata Motors and Tata Consultancy
Services, when shareholders are expected to vote on
removing Mistry from their board.
In a four-page letter, Tata Sons said Mistry misled the
selection committee set up in 2011 to select a chairman of Tata
Sons to succeed Ratan Tata, by making lofty statements about his
plans for the Tata Group, but in the next four years none of
those "plans have been given effect to".
Tata Sons also said at the time of appointment Mistry agreed
to distance himself from family enterprise Shapoorji Pallonji &
Co, but after some time he retracted his position.
Mistry's office did not offer any immediate comment.
In the letter, Tata Sons said Mistry over the past three to
four years concentrated power and authority as chairman in all
major Tata operating companies and tried to weaken management
structures in Tata companies "acting contrary to his fiduciary
On Monday, Mistry defended his position to shareholders of
six Tata group companies, explaining why he should not be
removed as director at their shareholder meetings.
Tata Sons, in a statement on Wednesday, said Mistry was
removed as chairman because the board of Tata Sons had lost
confidence in him and his ability to lead the group.
(Reporting by Rajendra Jadhav; Additional reporting by Promit
Mukherjee; Editing by Dale Hudson)