The Tata-Mistry battle has now percolated down to the boardrooms of group companies, portending mayhem.
The Mistry have been a trusted partner for the Tatas, building several castles for the group over a century and a half, of which many became landmarks of the vast Tata business empire. As the group rose to a pinnacle to count among the largest industrial conglomerates in the country and among the most respected corporate brands globally, the relationship between the two business families also bonded more strongly.
Ever since the Mistrys bought F.E. Dinshaw and Co., the first finance dealer for Tisco (now Tata Steel) and a key stakeholder in the Tata group in 1936, this bonding only consolidated in multifarious ways, culminating in a Mistry scion being ceremoniously given the baton of the $100 billion Tata group in 2012. The metaphorical castle that evolved from this long-standing relationship, began to crumble though, with Cyrus Mistry’s mysterious ouster as chairman of Tata Sons on October 24, 2016.
The public spat that erupted from the warring quarters of the Tatas and the Mistrys only confounded industry and analysts about the true bone of contention. The sequence of events of the last four weeks have thrown up several issues to the forefront, however, ranging from simple ego tussles to more serious issues of shareholder interest and corporate governance.
The split is now wide open − among not only board members, especially independent directors of Tata Sons − but also group companies. The Tatas have now moved to the next course of action, to remove not just Cyrus Mistry, but also some “hostile” independent directors from the boards of key group companies.
Denne historien er fra November 28, 2016-utgaven av Businessworld.
Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.
Allerede abonnent ? Logg på
Denne historien er fra November 28, 2016-utgaven av Businessworld.
Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.
Allerede abonnent? Logg på
MEMORIES & IMPRESSIONS
Ratan Tata was an exceptional human being. He was a visionary leader, esteemed industrialist, and a humanitarian, who left an indelible mark on India and the world.
The Robotaxi Market
The robotaxi market is shaping up to be a high-stakes battleground as tech giants and automakers race to transform urban mobility.
And the Nobel Prize Goes to AI
The recent Nobel Prize T awards to AI pioneers affiliated with Google have sparked a broader conversation about Big Tech's influence on research and the limitations of traditional prize categories.
Ola Electrified
Once considered a trailblazer in India’s electric vehicle (EV) ecosystem, Bhavish Aggarwal’s Ola Electric now faces a major accountability crisis.
Sharp Slide in Industrial Output on Eve of Deepavali
India’s index of industrial production (IIP) saw a sharp reversal in August, contracting by 0.1 per cent, in stark contrast to the 4.7 per cent growth in July, mostly because of significant contractions in mining and electricity generation.
Heralding the Solar Era with Sustainable Electrification
RAJEEV KASHYAP on the economics of solar power, the hurdles in scaling it, and much more
A WELL-GREASED MACHINE
The OmniBook X14 laptop runs on first-generation Snapdragon X Elite, which bets big on Al-enabled productivity and battery life, but falls short when it comes to overall experience, says Deep Majumdar
DO NOT LETA HEALTH CRISIS RUIN YOUR FINANCIAL HEALTH
For a family of four living in a metro, it is recommended to opt for a family floater health insurance plan with a sum insured of at least Rs 15-20 lakh
Disruption Ahead: Beyond Organisation Charts and Structures
ALBERT EINSTEIN FAMOUSLY said, “We cannot solve our problems with the same thinking we used when we created them.
Dr. Rahul Shivajirao Kadam: A Visionary Leader Blending Sustainability, Innovation, And Social Empowerment
We are on the stage of global warming, and these technologies not only help prevent further damage but also leave behind a better environment for future generations.