'Mistry concentrated power in own hands'

 Cyrus Mistry concentrated power in his own hands and weakened the management structures of the group companies, the Tata Group said on Sunday, in what is being seen as the most scathing attack on the ousted chairman of the conglomerate.

“Mistry has gradually over the past three to four years concentrated all power and authority only in his own hands as Chairman in all the major Tata operating companies and gone about systematically diluting the representation of Tata Sons on the boards of various Tata companies, whilst being fully cognizant that Tata Sons is the main promoter and largest shareholding group,” the Tata Sons said in a statement, ahead of the extraordinary general meeting.

This was very much against the past practices and traditions of the Tata Group. “Mistry has claimed that he was not given a “free hand”. Ironical, it may be, but in our view, it was this “free hand” and trust inhim that Mistry took advantage of, to weaken management structures in Tata companies acting contrary to his fiduciary duties,” the group said.

On the issue of Mistry’s appointment, the statement said that he was appointed as the chairman of the various Tata companies only through his chairmanship of the parent company Tata Sons, which has been a long-standing convention in the Tata Group.

Therefore, when Mistry was removed as Chairman of Tata Sons, propriety and reason demanded that he step down from the chairmanship of the various Tata companies. Instead, he has chosen to resort to selective media leaks, media statements and to make a public spectacle, knowing fully well that his actions would hurt and damage the companies, even while remaining as their Chairman.

“Mistry seems to have taken the stand that even if he ultimately has to relinquish, he would have the satisfaction of damaging a great institution built up over 150 years after just five years of his tenure. It is also ironical that Mistry is resisting his removal from the boards of these very same Tata companies which he has attacked by his false allegations and caused enormous harm to,” it said.

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