Tata Sons Chairman & directors to be appointed in consultation with Mistry Camp: NCLAT
A two-member NCLAT bench headed by Chairperson Justice S J Mukhopadhaya said that the move would remove the mistrust between Tata and Mistry group and would create a healthy atmosphere.
"We are of the view that for better protection of interest of all stakeholders as also safeguarding the interest of minority group, in future at the time of appointment of the Executive Chairman, Independent Director and Directors, the 'Tata Group' which is the majority group should consult the minority group i.e.'Shapoorji Pallonji Group," said NCLAT.
It also ordered that "any person on whom both the groups have trust, be appointed as Executive Chairman or Director as the case may be which will be in the interest of the Company and create healthy atmosphere removing the mistrust between the two groups, already developed and has caused global effect as admitted in the 'Press Statement' of the Company."
The appellate tribunal has also directed Ratan N Tata, Chairman emeritus, Tata Sons and the nominees of Tata Trust to desist from taking any decision in advance and interfere into the affairs of the holding company.
"Ratan N Tata and the nominee of the Tata Trusts shall desist from taking any decision in advance which requires majority decision of the Board of Directors or in the Annual General Meeting," the NCLAT order said.
The NCLAT said that the group's chairman emeritus Ratan Tata's actions against Mistry were 'prejudicial" and "oppressive" in nature.
The appellate tribunal said that the "affirmative voting power of the nominated Directors of the 'Tata Trusts' over majority decision of the Board; actions taken by Ratan N Tata, Nitin Nohria and NA Soonawala and others as discussed above; the fact that the Company ('Tata Sons has suffered loss because of 'prejudicial' decisions taken by Board of Directors."
The fact that a number of 'Tata Companies' have incurred loss; in spite of decision making power vested with the Board of Directors with affirmative power of nominated Directors of the 'Tata Trusts', it said. KRH KRH MR MR