Latest Business News - The rift between Tata Trusts chairman Ratan Tata and ousted Tata Sons chairman Cyrus Mistry began as far back as 2013, the Economic Times reported on Monday citing an affidavit filed by Tata before the National Company Law Tribunal (NCLT).
As reported earlier by Business Standard, Cyrus Mistry had taken the legal route in his fight against the Tatas by filing a lawsuit in NCLT against Tata Sons in late December. According to sources, Mistry's family-controlled investment firms moved the NCLT in Mumbai against Tata Sons. The petition was against oppression of minority shareholders and mismanagement of Tata Sons under Section 241 of the Companies Act, the sources had told Business Standard.
The affidavit, the ET report added, said that Mistry had not been able to turn around companies such as Tata Steel and Tata Motors, which resulted in a fall in dividends for Tata Trusts. Further, the affidavit stated that contrary to Mistry's claim – that Tata owns a minor stake in Tata Sons, while stakeholders like Mistry's investment firms actually suffer due to losses incurred by Tata Steel Europe – it was the Tata Trusts which held a majority stake in Tata Sons, far in excess of the stake held by Mistry's firms. Mistry's family owns 18.5 per cent of Tata Sons, while Tata Trusts — a philanthropic group of bodies endowed by the Tata family — own 66 per cent of the firm.
Tata's 37-page affidavit said that the group had "faltered" in its judgement when it appointed Mistry as the chairman.(Read More)
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