Former chairman of Tata Sons, Cyrus Mistry, has announced his resignation from the Tata group of companies as a whole. Mistry had earlier been replaced by Ratan Tata as interim chairman in a sudden move.
Mistry’s resignation follows a letter from interim chairman Ratan Tata appealing to shareholders to help remove the former from his post at all Tata companies. Announcing his retirement, Mistry in an official statement said that he had felt it was in the best interest of employees, shareholders and other stakeholders of the Tata Group that he moved away from the forum of the extraordinary general meeting.
"Having deeply reflected on where we are in this movement for cleaning up governance and regaining lost ethical ground, I think it is time to shift gears, up the momentum, and be more incisive in securing the best interest of the Tata Group," reports quoted Mistry as saying.
Mistry also revealed in his statement that he had decided to shift his campaign to a larger platform where “the rule of law and equity is upheld” seemingly saying that the battle could head to court following weeks of ongoing speculation.
As with other companies, the battle is likely to affect Tata Motors where Mistry was personally involved and had an exciting line-up of future products that promised to rejuvenate Tata Motors passenger car division. Now future products beyond the Nexon which need board approval are likely to get delayed.
Tata Motors had called an extraordinary general meeting (EGM) on December 22, 2016 to seek shareholders' approval for removing Cyrus Mistry as director of Tata Motors.