This man may change the game as Ratan Tata vs Cyrus Mistry loyalty test begins

As the independent directors in the Tata fraternity have started making their choices, it is yet to see who will opt for whom- Ratan Tata or Cyrus Mistry.

The apparent loyalty test began after the independent directors of the Taj hotels backed Mistry, saying they wanted him to continue as the chairman of Indian Hotels Company Ltd (IHCL). Mistry, who was removed as Chairman of Tata Sons, continues to remain head of many group of companies.

The board meetings of these companies are scheduled for November 10, 11 and 14.

In this trust vote, Nusli Wadia is going to play an important role.

Chairman of Bombay Dyeing and Britannia Industries, Wadia could play a crucial role as he is oldest friends of Ratan Tata and also an independent director with Tata Chemicals, Tata Steel and Tata Motors.

During the board meetings, Mistry would require the backing of independent directors to approve the quarterly results.

As per media reports, Wadia had helped Ratan Tata to ease out Russi Mody from Tata Steel in the 1990s.

Apart from Wadia, there are other independent directors who are on the board of more than one Tata company such as Vibha Paul Rishi, Mallika Srinivasan, Venu Srinivasan, Nasser Munjee, and O P Bhatt.

J N Gupta, who was an executive director with Sebi and now runs Stakeholders Empowerment Services, a corporate governance advisory firm, said: "If independent directors do not back Mistry at the forthcoming board meetings, they will have to face the uncomfortable question of what changed so drastically between June and October that after just three months they are taking a diametrically opposite view on Mistry.”