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    The goings-on in the Tata Group have placed the issue of conflict of interest firmly into focus

Cyrus Mistry voted out from Tata Sons board in 45 minutes

Feb 07 2017: At 3.30pm on Monday, 6 February, Tata Sons interim chairman Ratan Tata, chairman-designate N. Chandrasekaran, director Ronen Sen, Tata Trusts trustee N.A. Soonawala, a few other directors of the company and the nominees of some shareholders trooped into a conference room on the fourth floor of Bombay House, the headquarters of the Tata Group.
 
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Source: www.livemint.com

Cyrus Mistry losing ground to Tata Sons, but legal battle far from over

Feb 06 2017:he five-week long legal battle between Tata Sons Ltd and its ousted chairman Cyrus P. Mistry’s family firms, has so far gone largely in favour of Tata Sons Ltd, with the courts—first the National Company Law Tribunal (NCLT) and then the National Company Law Appellate Tribunal (NCLAT), dismissing pleas by the Mistry firms.
 
While it may seem that Mistry’s family firms are losing ground, the battle is far from over for two reasons—one, NCLT has yet to pronounce its final judgement on the petition and two, so far, both tribunals have not gone into the merits of the issue but only with pleadings and investigative agencies have not presented their fact-finding reports.
 
 
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Source: www.livemint.com

Mistry family firms question role of Tata Sons directors

Jan 27 2017:Mistry family firms have questioned the independence of independent directors at Tata Sons Ltd who voted to remove Cyrus Mistry as chairman in only the second board meeting they attended.
 
In an affidavit they filed on Monday with the National Company Law Tribunal, Cyrus Investments Pvt. Ltd and Sterling Investments Pvt. Ltd accused them and a trustee director of collusion.
 
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Tata-Mistry row had been brewing since Tata Motors 2015 rights issue

 
Jan 24 2017:Tata Sons Ltd’s board had serious differences with Cyrus P. Mistry, its ousted chairman, over the fundraising plans of Tata Motors Ltd in 2015, according to the affidavit and annexure filed by Ratan Tata and Cyrus Mistry at the National Company Law Tribunal (NCLT).
 
The affidavits were filed in response to a suit filed by Cyrus Investments Pvt. Ltd and Sterling Investment Corp. Ltd, the Mistry family investment firms, alleging mismanagement and oppression of minority shareholders at Tata Sons, the group holding company.
 
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Source: www.livemint.com

Ratan Tata’s fight with Cyrus Mistry gets a Sebi boost

 
Jan 23 2017:Mumbai: Sharing price-sensitive information with a chairman emeritus does not violate insider trading rules, the board of Securities and Exchange Board of India (Sebi) observed, in effect giving a clean chit to Ratan Tata.
 
Insider trading regulations “allows communication of unpublished price sensitive information if it is in furtherance of legitimate purposes, performance of duties or discharge of legal obligations,” according to a 14 January Sebi board note reviewed by Mint. The board meet took stock of the boardroom battle at Tata group, among other things.
 
 
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Source: www.livemint.com

Amid Typhoon Tata Nusli Wadia Backs Cyrus Mistry

 
JAN 16, 2017 :Indian industrialist Nusli Wadia, chairman of the $2.2 billion (revenues) Wadia Group, was away in New York when his nation's biggest corporate feud of 2016 erupted in October. The board of Tata Sons, holding outfit of the much revered $103 billion (revenues) Tata conglomerate, abruptly showed its chairman Cyrus Mistry the door and installed former chairman Ratan Tata, 79, as interim boss for four months.
 
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The Boardroom Battle At India's Tata Lands In Court

 
DEC 20, 2016:After resigning from the boards of key listed Tata companies yesterday, Cyrus Mistry, the ousted chairman of Tata Sons, fired his first legal salvo today by filing a suit with the National Company Law Tribunal in Mumbai. The petition by Mistry’s family investment firms that hold an 18.4% stake in Tata Sons, was filed under section 241 of the Companies Act seeking relief from oppression and mismanagement.
 
 
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Source: www.livemint.com

Tata Vs Cyrus Mistry: Lessons from the battle for Bombay House

Nov 18, 2016:Recall, American hollywood movie, Sully, a pilot who became a hero after landing his damaged plane to save the flight’s passengers and crew. Sully, however, was shaken to his core when the doubts started pouring over his heroic manoeuvre and questions were raised if Sully was a hero or a fraud.
 
A few recruiters believe Cyrus Mistry, recently ousted chairman of Tata Group, is probably that Sully. “Even if you think you have done a great job you can be subjected to very harsh criticism from other lens. It’s an old chapter in a new paperback,” said Biplob Banerjee, executive vice president, human resource at Jubilant FoodWorks Limited, operator of Dunkin’ Donuts and Domino’s Pizza in India.
 
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Source : www.hindustantimes.com 

Key takeaways from the Ratan Tata-Cyrus Mistry tussle 

MUMBAI: It's been close to a month since the ouster of Cyrus Mistry from Tata Sons blew up into one of the biggest corporate battles in India's history. Allegations and counter-allegations have been flowing thick and fast since — and there is no sign of a let up in the turf war.
 
ET caught up with professors at business schools and leadership experts to find out what were the main management or workplace lessons that the Tata-Mistry saga has thrown up. Here are.... 
 
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Source : www.economictimes.indiatimes.com 
 

Tata Global Beverages board removes Cyrus Mistry as chairman

Nov 16 2016: “Keeping in view the long-term interests and alignment of all the stakeholders and stability of the company, the board of directors resolved to replace Cyrus Mistry as chairman of the company with majority vote, with 7 out of the 10 directors present at the board meeting voting in favour of the resolution,” Tata Global Beverages said in a statement to the exchanges.
 
Cyrus Mistry continues as a director on Tata Global Beverages’s...
 
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Source : www.livemint.com 

As Tata firms’ marketcap sinks, investors want end to the war

NOVEMBER 14:With a whopping ?80,000-crore of marketcap wiped out in Tata Group companies, small and institutional investors want Tata Sons and Cyrus Mistry to bury the hatchet and look for a long-term solution to their dispute.
 
Senior executives representing institutional investors told BusinessLine that they urged Tata Sons to find a solution to the dispute soon.
 
“We met the top leadership at the Tata Group and expressed our concerns. We need clarity on several issues,” said an official on conditions on anonymity since the discussions were ....
 
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Source : www.thehindubusinessline.com 

Sebi increases vigil as Tata-Mistry battle escalates

Mon, 14 Nov 2016:Markets regulator Sebi has stepped up scrutiny on developments in the escalating Tata- Mistry feud, keeping a close vigil on all disclosures being made as also the finer details of the board meetings of listed firms of the Tata group.
 
The watchdog is seeking to prevent violation of corporate governance norms and protect investors' interest, for which it has also received communications from various stakeholders, including foreign institutional investors. In the wake of boardroom battles at various Tata group companies, Sebi is keeping a close watch on the role of independent as well as ............
 
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Source : www.dnaindia.com

Cyrus Mistry sought to formalize Tata trusts’ say in group firms

Nov 14 2016 Mumbai: Cyrus Mistry, the ousted chairman of Tata Sons Ltd, formally talked about defining the relationships between Tata group trusts and operating company boards at a June meeting of the holding company’s nomination and remuneration committee, said two people close to Mistry.
 
Mistry’s team had prepared a governance report on issues related to the group structure, the two said, declining to be identified because of the sensitive nature of the issue. Mistry was removed before he had an opportunity to present these issues at the 24 October board meeting of ....
 
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Source : www.livemint.com
 

Tata Sons has stooped to a new low: Cyrus Mistry

November 14, 2016: Cyrus Mistry has hit back at Tata Sons, saying the group holding company has stooped to a new low by questioning many eminent personalities who serve as independent directors on the boards of Tata Chemicals and Indian Hotels Company (IHCL).
 
In a statement on Sunday evening, Mistry’s office said these eminent people, who serve as independent directors, are now being questioned by Tata Sons for undertaking their fiduciary duty of protecting the shareholders ....
 
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Source : www.business-standard.com

Tata Sons may not guarantee credit for Cyrus Mistry-helmed companies 

Nov 14, 2016,MUMBAI: Tata Sons may not guarantee loans, refinancing deals or funding requirements at group companies where Cyrus Mistry refuses to step down as chairman, making borrowings much more costly. 
 
Units that don’t adhere to the values and policies of Tata Sons cannot be supported with the comfort of Tata assurance, top executives of the holding company told ET. 
 
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Source : www.economictimes.indiatimes.com

Key week for Tata tussle as Cyrus Mistry faces Tata Motors board

November 14, 2016:Tata Motors, owner of Jaguar Land Rover and makers of India’s cheapest car, will on Monday become the latest piece of the Tata empire to be dragged into a battle over its future, in a test case for parent Tata Sons’ efforts to tighten control. The $100 billion Tata group has been mired in a public spat with former holding company chairman Cyrus Mistry since last month, when he was abruptly ousted from the top job – an acrimonious tussle that has revived debate around India’s corporate governance and....
 
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Source : www.indianexpress.com

Tata boardroom battle: Autonomy of independent directors comes into question

Nov 14, 2016:The recent board meets of Indian Hotels and Tata Chemicals which saw independent directors vouching for ousted chairman Cyrus Mistry’s leadership, resulting in calls for ouster of these directors, and that at Tata Steel, where similar efforts by veteran industrialist Nusli Wadia were also thwarted, have raised the issue of independence of independent directors.
 
The issue of opinions of independent directors and their appointments in the ongoing boardroom battle at the Tata group are likely to come under regulatory watch. Market regulator Sebi chairman UK Sinha, without specifying on the Tata goings-on, had recently stressed that independent directors have a fiduciary responsibility. Sebi did not respond to a query ........
 
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Source : www.hindustantimes.com
 

Will do whatever it takes to deal with Mistry ouster: Tata Sons

Nov 14, 2016 Mumbai: Hardening its stand, Tata Sons on Sunday said its management will do whatever is required to deal with the situation arising out of the ouster of Cyrus Mistry and wanted its independent directors to ensure future of Tata companies and interest of all stakeholders is protected.
In a late-evening statement, Tata Sons said in its statement on 10 November 10, 2016, it has already put forward facts so that the decision of the Tata Sons board "to replace Cyrus P Mistry as chairman is seen in........
 
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Source : www.firstpost.com

Ratan Tata-Cyrus Mistry row escalates, both camps gear up for no-holds-barred fight

Nov 14, 2016 Mumbai: The Rata Tata-Cyrus Mistry feud flared up on Sunday with the ousted chairman rebutting allegations of "drifting away" Tata companies during his tenure and hitting back at attempts to question integrity of independent directors who backed him, prompting the $102-billion group's holding firm Tata Sons to assert it will do "whatever is required" to deal....
 
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'Tatas, Mistry's back and forth distraction from core issue' 

Nov 13, 2016:NEW DELHI: The current back and forth between Tata Sons and its ousted chairman Cyrus Mistry is "reactionary" and unlikely to provide any meaningful long term solution, according to proxy advisory firm IiAS. 
 
Noting that the decision of independent directors of Tata Chemicals and Indian Hotels CompanyBSE -6.15 % to support Mistry adds to the growing complexity of the current narrative, IiAS said Tata group needs to focus on making its complicated holding .....
 
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Source : www.economictimes.indiatimes.com

Ousted Tata chairman tried for balanced corporate governance - statement 

Nov 13, 2016:MUMBAI Ousted Tata Sons chairman Cyrus Mistry had tried to form a corporate governance framework that balanced the interests of the promoter and shareholders without impinging on the independence of group companies, according to a statement issued by his office on Sunday.The statement comes days after a Tata Sons statement that said Mistry, with the help of independent directors, was trying to take over Indian Hotels Co, which owns the Taj chain of hotels, when he was heading the $100 billion....
 
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Source : www.firstpost.com

In fight with Cyrus Mistry, Tata Sons now targets Nusli Wadia

November 12, 2016 A long-time friend and ally of the Tata Group, Nusli Neville Wadia on Friday paid the price for supporting Cyrus Mistry, son of Shapoorji Pallonji Mistry, who was removed as chairman of Tata Sons on October 24.
Tata Sons has asked Tata Steel, Tata Motors and Tata Chemicals to call for extraordinary general meetings (EGMs) to remove Wadia from the boards of these ....
 
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Source : www.financialexpress.com
 

Tata's boardroom battle with ousted chairman Mistry escalates

 
Nov 11, 2016:Tata Sons, holding firm of India's $100-billion salt-to-software Tata conglomerate, launched a broadside on Thursday against its ousted chairman Cyrus Mistry, criticising his performance and removing him as head of the group's flagship business.
 
In a nine-page statement, Tata accused Mistry of trying to take control of one of Tata's units and creating distance between the promoter, Tata Sons, and its group companies.
 
It also blamed him for nearly causing losses and eroding shareholder ....
 
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Source : http://in.reuters.com

Tata boardroom battle: Spat raises pertinent questions

November 8, 2016On a sultry afternoon on September 2, 1997, there was a dramatic boardroom change. At the board meeting of Indian Hotels Company Ltd, the powerful chief of that company (IHCL), Ajit Baburao Kerkar, was ousted with Ratan Tata being elected as the chairman. Soon, Tata’s confidant RK Krishna Kumar was brought in as the new managing director of IHCL.
 
Circa 2016. On November 4, independent directors of Indian Hotels led by HDFC chairman Deepak Parekh, former Hindustan Unilever chairman Keki Dadiseth, Nadir Godrej of the Godrej Group and three others met hours before the board meeting and “unanimously expressed their full confidence in the chairman Cyrus Mistry, and praised the steps taken by him in providing strategic direction and leadership to the company”, less than a fortnight after Mistry was asked to step down as the chairman of ....
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Source : www.indianexpress.com

Ratan Tata is running out of time to restore his family empire 

Nov 08, 2016 : It is, said a bewildered employee of India’s biggest company, very "un-Tata-like." 
 
The dynastic business that built a reputation over more than a century for discretion, integrity and fair-dealing has sunk into a public spat of allegations and name-calling. Its directors trade barbs. Its share price is tumbling. And on Friday, executives were jostled in the street while security staff engaged in an unseemly brawl outside Bombay House, the group’s revered headquarters. 
 
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Source : http://economictimes.indiatimes.com

Tata-Mistry tussle: Cyrus ousted on the day he was to present paper on corporate governance

November 8, 2016Former Chairman of Tata Sons Cyrus Mistry was to present a corporate governance document before the board aimed at  improving governance practices within the group on October 24, the day he was replaced as the chairman, a person close to Mistry told The Indian Express on the condition of anonymity.
 
“The day he (Cyrus) got fired — that was the discussion day. He had developed a document called the corporate governance document. Because he was frustrated after three years, so he developed a document. It outlined the rules of engagement between the Tata Trust, the Tata Sons, Tata independent boards and operating companies,” said the person who is familiar with the development.
 
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Source : http://indianexpress.com

Tata independent directors’ roles come under a cloud

November 8, 2016Mumbai: How independent are independent directors? This question has assumed more than cursory interest in the wake of the escalating controversy in the Tata Empire.
 
The goings-on in the Tata Group have placed the issue of conflict of interest firmly into focus.
 
Some of the independent directors on the boards of Tata Group firms are also trustees of Tata Trusts, the largest shareholder of Tata Group parent firm Tata Sons, chaired by Ratan Tata.
 
For example, K.B. Dadiseth, an independent director on the board of Indian Hotels, is also the member of Tata Trusts. While the board of Tata Sons resolved to remove Cyrus Mistry as chairman last month, independent directors on the board of Indian Hotels had reposed their faith in IHCL Chairman Mr. Mistry and had praised his strategic vision.
 
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Source : www.thehindu.com

FIIs raise concerns over Tata Sons having access to strategic information about Tata Motors 

Nov 07, 2016: NEW DELHI: A group of foreign institutional investors (FIIs) that together own more than 10% of Tata MotorsBSE -3.19 % has written to the board expressing concerns about the possibility of Tata Sons being given preferential access to strategic information ahead of other investors, according to persons directly aware of the matter. 
 
The letter makes no reference to the recent sacking of Cyrus Mistry as chairman of Tata Sons in a boardroom putsch that saw Ratan Tata return to the helm  .. 
 
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Source : http://economictimes.indiatimes.com 

From Kautilya to Tata-Mistry spat: Charting the development of corporate governance in India

Nov 7, 2016:The genesis of corporate governance in India can be traced back to Kautilya’s Arthshastra. Kautilya, the noted statesman and principal adviser to the Mauryan Emperor Chandragupta Maurya, believed that the happiness of the king depended on the happiness of his people. He propounded that the King and his ministers must follow a strict code of discipline and always act in the best interest of their subjects.
 
Parallels can be drawn between the structural hierarchy of ancient India and contemporary corporate anthropoid architecture. The Board of Directors must serve the interests of the company as a whole if everyone is to profit. Though corporate governance norms are essential to the proper working of a company, it took the Indian authorities a fair amount of time to bring it to the forefront of their policy agendas.
 
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Source : www.firstpost.com

The fig leaf of corporate governance

 
Tue, Nov 01 2016:The Tata Sons corporate governance disaster reminds us that after all the reforms, company boards have still to grow a backbone
 
Way back in 1976, management guru Peter Drucker wrote: “Whenever an institution malfunctions as consistently as boards of directors have in nearly every major fiasco of the last forty or fifty years, it is futile to blame men. It is the institution that malfunctions.” Four decades later, the Tata Sons corporate governance disaster reminds us once again that after all the regulatory reforms, after all the talk about the separation of ownership and control, company boards have still to grow a backbone.
 
This time, the disappointment is all the more because the reputation of the Tatas is at stake. The Tatas are an icon of Indian business, supposed to represent its best practices. They have been pioneers of modern industry in the country, their leaders have been larger than life and they have acquired so high a standing in the minds of the public that even l’affaire Radia did little to take the sheen off their holier-than-thou image. So, this fiasco isn’t just about the Tatas. If this is what happens in the hallowed Tata Sons boardroom, what skeletons wait to be unearthed from less genteel, more grubby, Indian company boards?
 
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Source : www.livemint.com

Corporate governance standards intact, Ratan Tata assures LIC 

Oct 29, 2016,NEW DELHI: Ratan Tata, the interim chairman of Tata Sons, has assured Life Insurance Corporation of India (LIC) that publicly traded group companies will uphold “proper governance standards” and decide independently about former chairman Cyrus Mistry’s continuation on their respective boards. 
 
Tata also told LIC that corporate governance standards have not been compromised at Tata Sons or in any group company, people close to the discussions told ET. Mistry’s fate as board director o .. 
 
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Source : http://economictimes.indiatimes.com
 

Sebi to look into Tata-Mistry saga for possible breach of corporate governance rules 

 
Oct 27, 2016 MUMBAI: Securities and Exchange Board of India will seek details from Tata Group companies on corporate governance issues flagged by outgoing chairman Cyrus Mistry in an email to the board of Tata Sons. Separately, stock exchanges on Wednesday sought clarification from the Tata Group’s listed firms on the matter. 
 
“We are keeping a close watch on all the developments and are studying the letter addressed to that board raising corporate governance issues,” said a senior Sebi official. .. 
 
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Source : http://economictimes.indiatimes.com
 
 

 

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