The National Company Law Tribunal (NCLT) on Monday rejected Tata Sons former chairman Cyrus Mistry’s challenge against the company, dismissing his plea by claiming that the issue has no merit.
NCLT said that the board of directors have the right to remove its executive directors and Cyrus Mistry was removed “because a majority of the board members has lost confidence in him after he sent out certain crucial information to the Income Tax Department, leaked details to the media and came out openly in public against the company’s shareholders and its board”.
However, Cyrus Mistry in response said that the decision was disappointing but not surprising and he will strive for the good governance.
He said, “The ruling of the National Company Law Tribunal is disappointing although not surprising. We will continue to strive for ensuring good governance and protection of interests of minority shareholders and all stakeholders in Tata Sons from wilful brute of the majority. An appeal on merits will be pursued”.
After four-year stint on October 2016, Cyrus Mistry was removed from the board of directors and Ratan Tata took up as the interim chairman. He reverts back by saying that his removal was illegal and Tata Sons is undergoing mismanagement with the oppression of the minority shareholders.
The two judge of NCLT did not find any merit in legacy issues raised by Cyrus Mistry and Tata Sons was aware of his removal. Cyrus Mistry has further challenge the decision to the National Company Law Apellate Tribunal.