Welcoming TATA Sons back on Exchanges?

The sixth chairman of Tata Group, Cyrus Mistry, was deposed from the position on charges of mismanagement in October 2016, after having served for 4 years. In his stead, Natarajan Chandrasekaran was soon appointed as the new Executive Chairman of the salt-to-software conglomerate. Two of Mistry’s entities – Cyrus Investments & Sterling Investments filed an “oppression & mismanagement” case against Tata Sons – the holding company of the Group – in December 2016, which was subsequently dismissed by NCLAT. After removal of Mistry, Tata Sons received clearance from the RoC to go from deemed public limited to private limited in August 2018. On 18th December 2019, NCLAT held the appointment of N Chandrasekaran an illegal event and restored Cyrus Mistry as Chairman. It also ruled the Company’s move to go private as unlawful and ordered a reversal. “The outcome of the appeal is a vindication of my stand taken when the then board of Tata Sons, without warning or reason removed me, first as the executive chairman, and subsequently as a director of Tata Sons”, Mistry said in a statement.