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The Board of <keyword id="46894" type="General" weightage="80" keywordseo="tata-sons" source="Orion">Tata Sons</keyword> on Friday approved the reappointment of N. <keyword id="56148" type="General" weightage="80" keywordseo="chandrasekaran" source="Orion">Chandrasekaran</keyword> as the <keyword id="6420527" type="General" weightage="80" keywordseo="executive" source="Orion">Executive</keyword> Chairman for the next five years. The decision took place during a board meeting held on Friday. Accordingly, the Board reviewed the last five years' performance of the group and considered the reappointment of Chandrasekaran. In a statement, <keyword id="8555" type="General" weightage="100" keywordseo="tata" source="Orion">Tata</keyword> Sons said that <keyword id="5196318" type="General" weightage="20" keywordseo="ratan-n-tata" source="Orion">Ratan N. Tata</keyword>, who was a special invitee to this meeting, expressed his satisfaction on the progress and performance of the Tata Group under the leadership of Chandrasekaran. "He recommended his term be renewed for a further five-year period," the statement said. "The Board members commended the performance of the Executive Chairman and unanimously approved the reappointment of Mr. <keyword id="97017" type="General" weightage="20" keywordseo="n-chandrasekaran" source="Orion">N Chandrasekaran</keyword> as the Executive Chairman for the next five years." Tata Sons is the principal investment holding company and promoter of Tata companies. In 2020-21, the revenue of Tata companies, taken together, was $103 billion These companies collectively employ over 8,00,000 people. At present, there are 29 publicly-listed Tata enterprises with a combined market capitalisation of $314 billion as on December 31, 2021. SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/cryptocurrency/news/taxing-cryptocurrencies-does-not-give-them-legal-status-clarifies-indias-finance-minister/articleshow/89500097.cms">Taxing cryptocurrencies does not give them legal status, clarifies India’s finance minister</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/business/corporates/news/board-is-reviewing-some-serious-allegations-says-new-bharatpe-ceo/articleshow/89497260.cms">Board is reviewing some 'serious allegations', says new BharatPe CEO</a>

Tata Sons Board reappoints N. Chandrasekaran as Executive Chairman for the next five years

<keyword id="46894" type="PERSON" weightage="20" keywordseo="Tata-Sons">TATA Sons</keyword> removing its Chairman puts spotlight on family businesses as never before. 
 Legally there seem to be no lapse on the part of <keyword id="8555" type="CITY" weightage="20" keywordseo="Tata">Tata</keyword> Sons Board. Tata Sons, is an unlisted company, thus not subject to the slew of <keyword id="3794185" type="UNKNOWN" weightage="20" keywordseo="security-exchange">Security Exchange</keyword> <keyword id="6373268" type="ORGANIZATION" weightage="20" keywordseo="corporate-governance">corporate governance</keyword> norms. Thus they seem to have replaced their Chairman consistent with the power vested with <keyword id="490701" type="ORGANIZATION" weightage="20" keywordseo="Tata-Trust">Tata Trust</keyword> through its Memorandum of Articles. 
 
However there is a bigger question that needs to be addressed. The conduct of unlisted promoter entity has serious and direct impact on minority shareholders of listed entity. Thus it is not good enough to say these issues are not linked and Tata Sons can go about its business purely based on the fact that it is an unlisted entity thus not accountable to Corporate Governance regulations. 
 <keyword id="6355725" type="CITY" weightage="20" keywordseo="Tata-Group">Tata group</keyword> of companies account for over 7% of the aggregate value of listed market cap on Indian stock exchange, thus it is indeed a material event for minority shareholders to look at the regulations more carefully. This incidence clearly shows that Memorandum of Articles is not enough governance mechanism for unlisted promoter entities and we need better regulations, which would encourage transparency and accountability to protect interests of minority shareholders. 
 The second issue to focus on is the boards of the listed entities and how they would deal with a Chairman who is not wanted by the primary promoter entity. <keyword id="6356895" type="PERSON" weightage="20" keywordseo="Cyrus-Mistry">Cyrus Mistry</keyword> continues to be Chairman of the listed Tata Group entities which all have independent Boards. This will throw spotlight on the role and responsibility of the independent directors on such boards. Questions would be asked if it is not expected of these listed entities to share their views to address the concerns of minority shareholders now. Questions would also be asked on how they go about removing <keyword id="763" type="PERSON" weightage="20" keywordseo="Cyrus">Cyrus</keyword> on the behest of the largest shareholder, Tata Sons. Questions would be asked if they don’t do anything and let things be, as we now know that most decisions would now be taken at Tata Sons level and the listed entity current Chairman is a lame duck. 
 
Independent directors have far been more dependent rather than independent across the world. This incidence will put this question right in the center of the debate at least in India -Do independent directors in listed entities have a say and can they really protect a minority shareholder’s interest. 
 
 
Vineet Nayar of HCL 
 
With conflict within family in the promoter entity a likely scenario in a multi generation families, it is time to evolve tighter governance at that level at least from the perspective of information flow and transparence in decision making that impacts the minority shareholders, employees and customers of the listed entity. If the key decisions are taken by the promoter entity as in this case of Tata Sons and Tata Trusts and not at the level of the Board of the listed entity-this debate is urgent and important. 
 
Family run companies are a great asset to long term thinking of a company. India has been built around such family businesses and I am a big supporter of this model. Thus we definitely need to preserve that strength and add to it a governance layer so that it continues to deliver results for all stakeholders and the trust in such instructions grows with time. 
 So what would happen to the Tata <keyword id="45535" type="UNKNOWN" weightage="100" keywordseo="Saga">Saga</keyword>? Fortunately it will remain in front pages for sometime and that is why I am hoping that the debate around the core issue of corporate governance in unlisted promoter entities would not be lost so easily. 
 
(This article is written by Vineet Nayar. The author is the former VC and CEO of HCL Technologies. He is now the Founder and Chairman of Sampark Foundation)

My 2 cents on the TATA Saga

<keyword id="6356895" type="PERSON" weightage="100" keywordseo="Cyrus-Mistry">Cyrus Mistry</keyword>, the former <keyword id="46894" type="PERSON" weightage="100" keywordseo="Tata-Sons">Tata Sons</keyword> chairman recently opposed the appointment of Natarajan Chandrasekaran as his successor and is said to be preparing to open another legal front challenging the decision 
 
According to the officials, a day before the board of Tata Sons met to consider Chandrasekaran as the chairman last week, Mistry shot off an angry letter to his fellow board members challenging the legality of the appointment. 
 
"Unlike the October board meeting when the decision to sack Mistry was not mentioned in the board agenda circulated before, this time the members were aware of what to expect. Mistry is still a director of Tata Sons and the agenda papers were circulated to him as well. That prompted the mail from him," an official aware of the communications, told ET. 
 
Reportedly, Mistry did not physically attend the board meeting the following day. 
 
Details of Cyrus' possible legal strategy could not be independently verified but for some this could be a potential precursor to a fresh complaint before the court. 
 Mistry has already challenged the decision in the <keyword id="6354457" type="ORGANIZATION" weightage="20" keywordseo="National-Company-Law-Tribunal">National Company Law Tribunal</keyword> (NCLT). In his petition, Mistry alleged collusion between Tata Sons and <keyword id="6383155" type="UNKNOWN" weightage="20" keywordseo="Tata-Trusts">Tata Trusts</keyword> and oppression of minority interests at the $103-billion Indian conglomerate. 
 
In his missive to the board members on January 11, Mistry argued that Chandrasekaran's appointment was illegal considering the matter was still sub-judice. Tatas after getting a green signal from their legal advisors decided to proceed with the board meeting. 
 "<keyword id="4078029" type="UNKNOWN" weightage="20" keywordseo="the-tata-sons-board">The Tata Sons Board</keyword> meeting held on January 12, 2017 and the appointment of <keyword id="97017" type="COMPANY" weightage="20" keywordseo="N-Chandrasekaran">N Chandrasekaran</keyword> as chairman of Tata Sons have been done as per the company's Articles of Association and relevant laws," a Tata Sons spokesperson told ET. 
 
Sources close to Mistry said that he was not comfortable attending the board meet since the Tatas had violated undertakings given by them in court. 
 
"At this stage, we do not wish to discuss next steps in terms of legal strategy," people close to Mistrytold ET. 
 
Tata Sons lawyer Abhishek Manu Singhvi said the tribunal's December 22 directives just meant that no legal action or proceedings could be undertaken by the company, Tata Trusts or the Mistry family firms. Tata Sons was, however, allowed to take company related decisions, he said. By filing the petition, the former chairman is trying to get the tribunal to stop Tata Sons from holding a planned shareholder meeting to oust him as a director, he claimed.

War intensifies: Cyrus Mistry is going to challenge Chandrasekaran's appointment as Tata Sons Chairman

The Indian capital market regulator, <keyword id="6355630" type="ORGANIZATION" weightage="20" keywordseo="Securities-and-Exchange-Board-of-India">Securities and Exchange Board of India</keyword> (SEBI), is examining all events at <keyword id="46894" type="PERSON" weightage="100" keywordseo="Tata-Sons">Tata Sons</keyword> and the other group companies to check violation of insider trading regulations. 
 SEBI is seeing if price-sensitive information was disclosed to Tata Sons directors and <keyword id="6383155" type="UNKNOWN" weightage="20" keywordseo="Tata-Trusts">Tata Trusts</keyword> nominees before it was approved by the boards of operating companies. 
 
"We are taking note of the events unfolding at Tata companies and examining whether there has been any securities law violations,” a senior SEBI official told ET. 
 
As per the rules, price-sensitive information can be shared only on a need basis and people who are not crucial should not know about it. 
 The SEBI got alert when ousted Tata Sons Chairman <keyword id="6356895" type="PERSON" weightage="20" keywordseo="Cyrus-Mistry">Cyrus Mistry</keyword> said that Trusts' directors Nitin Nohria and Vijay Singh left a Tata Sons board meeting in progress, keeping the board waiting for almost an hour, to obtain instructions from <keyword id="6360722" type="PERSON" weightage="20" keywordseo="ratan-tata">Ratan Tata</keyword>. 
 
"Such a work pattern has also created the added risk of contravening insider-trading rules,” Mistry had said in his e-mail to Tata Board. 
 
“Although the directors are appointed by the shareholders of the company, their primary duty is to the company and they are legally bound to act in the best interests of the company and not in the best interests of its majority shareholders,” Sandeep Parekh, founder of Finsec Law Advisors and who was an executive director of SEBI, told ET. 
 
"Confidential information pertaining to the deal revealed by the officials of Tata Power to the board of Tata Sons violates provisions of the Companies Act as well as Sebi's insider-trading regulations,” he said.

India’s market regulator is examining Tata Sons and group companies for a major regulation violation

New Delhi, Dec 17 () The National Company Law Appellate Tribunal (NCLAT) will pronounce its judgement over the petition moved by former Tata group Chairman Cyrus P Mistry and the two investment firms challenging his removal from the group.
A two-member NCLAT bench headed by Chairperson Justice S J Mukhopadhaya will pronounce its judgement over the petitions.
The Appellate Tribunal had reserved its order in July this year, after completing its marathon hearing over the issue.
Earlier, the Mumbai bench of the National Company Law Tribunal (NCLT) had dismissed the petitions filed by the two investment firms Cyrus Investments Pvt Ltd and Sterling Investments Corp challenging Mistry' removal.
Later, Mistry had also personally approached the NCLAT over the NCLT order.
Mistry, who was the sixth chairman of Tata Sons, was ousted from the position in October 2016. He had taken over as the chairman in 2012 after Ratan Tata announced his retirement.
The Mistry camp had challenged the July 9 order of the Mumbai bench of the NCLT which dismissed the pleas against his removal as Tata Sons chairman, as also the allegations of rampant misconduct on part of Ratan Tata and the company's board.
A special bench of the tribunal had held that the board of directors at Tata Sons was "competent" to remove the executive chairperson of the company. The NCLT bench had also said that Mistry was ousted as chairman because the Tata Sons' Board and its majority shareholders had "lost confidence in him".
Two months after his removal, Mistry's family-run firms approached the NCLT as minority shareholders, against Tata Sons, Ratan Tata, and some other board members.
Mistry in his pleas primarily argued that his removal was not in accordance with the Companies Act and that there was rampant mismanagement of affairs across Tata Sons. KRH MKJ

NCLAT judgement over Mistry's removal as Tata Group Chairman on Wednesday

<keyword id="617644" type="ORGANIZATION" weightage="20" keywordseo="Tata-Sons-Board">Tata Sons board</keyword> as well as <keyword id="6360722" type="PERSON" weightage="20" keywordseo="ratan-tata">Ratan Tata</keyword> were surprised and shocked after the independent directors of Indian Hotels Company Ltd (IHCL), mainly known as <keyword id="6453087" type="COMPANY" weightage="20" keywordseo="taj-hotels">Taj Hotels</keyword>, backed <keyword id="6356895" type="PERSON" weightage="100" keywordseo="Cyrus-Mistry">Cyrus Mistry</keyword> as their chairman. 
 In a statement to the <keyword id="43628" type="CITY" weightage="20" keywordseo="Bombay-stock-exchange">Bombay Stock Exchange</keyword> and National Stock Exchange, six independent directors of the Taj Hotels expressed "full confidence" in Mistry and said it was essential to IHCL investors and the public at large know of their views so that they could take an "informed decision" on its stock. 
 
As per reports, Tatas are going to see whether these directors gave a free and fair view or not. 
 The Tatas may question them and see if they were not lured by the <keyword id="6371516" type="CITY" weightage="20" keywordseo="Shapoorji-Pallonji">Shapoorji Pallonji</keyword> (SP) Group. 
 
The support from the six directors comes as a surprise as Tata Sons Board had removed Mistry as its chairman owing to his lack of vision and inefficiency. 
 
Mistry, scion of the SP Group, has refused to quit the boards of various group companies. 
 
"We would like to know if the independent directors noted this dichotomy and asked Mistry about the allegation that eroded market value," a source told ET.

Tatas are surprised after Taj directors express full confidence in Cyrus Mistry, may look into authenticity

(Eds: Adding details) New Delhi, Jun 5 () The USD 111 billion Tata Group is not looking to monetise investments to raise capital and has enough cash to support group firms, its Chairman N Chandrasekaran said on Friday as he sought to scotch speculations about the impact of the COVID-19 pandemic on the group's business. The Board of Tata Sons, the holding company of the salt-to-software conglomerate, met on Friday reportedly to evaluate and discuss strategies to allocate funds to group companies and prioritise sectors needing more liquidity. Without mentioning the board meeting, Tata Sons issued a statement to "dispel the recent unfounded rumours" about the group. "The Tata group companies, like all other companies, are facing both challenges and opportunities arising out of the pandemic and resulting economic situation, based on the industries and markets they operate in," Chandrasekaran said in the statement. "All our group companies are progressing well responding to these challenges and opportunities and we are confident that they will emerge stronger," he added. Terming reports on the impact of COVID-19 on the group as "malicious" and intending to undermine the performance of the Tata group and discredit the Chairman Emeritus Ratan N Tata, he said the group is well poised to capture new opportunities. "We are focused on navigating the current situation and profitable growth," he said. "Tata Sons is in a strong financial position with adequate cash flows to support the group companies and new growth initiatives. Tata Sons is not looking to monetise its investments to raise capital." Companies across sectors have borne the brunt of the coronavirus pandemic and the nationwide lockdown imposed to curb its spread. Sectors most impacted include hospitality, auto, aviation and consumer goods. Tata Group is present in all of them. Tata Steel and JLR have suffered the most. Its flagship Tata Consultancy Services (TCS) too has not remained untouched by the impact of the pandemic. Since taking over as chairman of the group in February 2017, Chandrasekaran has increased synergies across group companies to best leverage the strength of the group. It was speculated that the Tata Sons board may be presented with a strategy for growth in a post-COVID world by optimising costs. The statement did not say anything about the deliberations of the board. The group's top management has taken up to 20 per cent salary cut for the first time in the conglomerate's history. ANZ ANZ ABM ABM

Tata Group not looking to monetise investments, has enough cash, says Chairman N Chandrasekaran

<ol><li><keyword id="6356895" type="General" weightage="20" keywordseo="Cyrus-Mistry" source="Orion">Cyrus Mistry</keyword>, the former chairman of <keyword id="46894" type="General" weightage="50" keywordseo="tata-sons" source="Orion">Tata Sons</keyword>, was born in Mumbai on 4 July 1968. He was an Irish by nationality as his mother was Irish.</li><li>He was the second son of billionaire and construction magnate <keyword id="6689214" type="General" weightage="50" keywordseo="pallonji-mistry" source="Orion">Pallonji Mistry</keyword> and his elder brother is <keyword id="844645" type="General" weightage="50" keywordseo="shapoor-mistry" source="Orion">Shapoor Mistry</keyword>. Both his parents held Irish citizenship.</li><li><keyword id="6391150" type="General" weightage="100" keywordseo="mistry" source="Orion">Mistry</keyword> went to Cathedral &amp; John Connon School in Mumbai. He went to Imperial College in London and got a Bachelor of Engineering in civil engineering from University College London. </li><li>Pallonji Mistry died earlier this year in June. The Pallonji’s have had business interests in India for over 100 years. In the 1930s Mistry’s grandfather acquired a stake in Tata Sons. He also got a Masters degree in management from University of London. </li><li>The Mistry family has 18.37% in Tata Sons, which is the largest shareholding by a single entity.</li><li>Cyrus Mistry joined the Tata Sons board in 2006 after his father retired from it. He served as director on Tata Elxsi between 1990 and 2009 and was also a director on Tata Power board till 2006.</li><li>In 2013, Mistry was appointed chairman of Tata Sons and was also appointed chairman of several other Tata group companies. </li><li>Cyrus Mistry was married to Rohiqa Chagla, the daughter of lawyer Iqbal Chagla and granddaughter of jurist MC Chagla. It was his father in law that strategized his entire legal battle against Tata Sons. </li><li>Mistry has two sons – Firoz and Zahan Mistry.</li><li>Mistry was known to be a soft spoken and gentleman who believed he had to fight for his honour after he was evicted in an ugly boardroom battle.</li></ol>

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Tata Sons Board reappoints N. Chandrasekaran as Executive Chairman for the next five years

IANS

My 2 cents on the TATA Saga

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War intensifies: Cyrus Mistry is going to challenge Chandrasekaran's appointment as Tata Sons Chairman

BI India Bureau

India’s market regulator is examining Tata Sons and group companies for a major regulation violation

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NCLAT judgement over Mistry's removal as Tata Group Chairman on Wednesday

PTI

Tatas are surprised after Taj directors express full confidence in Cyrus Mistry, may look into authenticity

BI India Bureau

Tata Group not looking to monetise investments, has enough cash, says Chairman N Chandrasekaran

PTI

10 things you need to know about Cyrus Mistry

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