Cyrus Mistry (PTI file photo)

MUMBAI: Cyrus Mistry , who was reinstated as chairman of Tata Sons and director of TCS , Tata Teleservices and Tata Industries by the National Company Law Appellate Tribunal (NCLAT), said on Sunday he was not interested in returning to these positions. He, however, said he would seek a seat on the board of Tata Sons for improving transparency at the holding company of the Tata Group .

"To dispel the misinformation campaign...I intend to make it clear that despite the (December 18, 2019) NCLAT order in my favour, I will not be pursuing the executive chairmanship of Tata Sons, or directorship of TCS, Tata Teleservices or Tata Industries," he said in a statement.

He said he took the decision as the "interests of Tata Group are far more important than the interest of any individual".

The scion of the Shapoorji Pallonji (SP) family added that he will, however, "vigorously pursue all options to protect his family's rights as a minority shareholder, including that of resuming the 30-year history of a board position in Tata Sons and the incorporation of the highest standards of corporate governance and transparency at the company". The family, with an 18.4% stake in Tata Sons, has been a shareholder of the company since 1965 and was invited to its board in 1980.

Ratan Tata, chairman emeritus of Tata Sons, among others, last week moved the Supreme Court challenging the NCLAT order, stating that restoring Mistry to his original positions to complete his tenures that had expired, would go against the interest of shareholders and create confusion in the working of the companies.

Mistry's statement puts to rest the speculation regarding the uncertainty over the future leadership at Tata Sons. Apart from reinstating Mistry as the chairman of Tata Sons, a position he held for nearly four years until October 24, 2016, when he was hastily removed in a boardroom coup, the NCLAT held the appointment of his successor N Chandrasekaran as illegal.

"This legal fight has never been about me. It has always been and will always be about protecting the rights of minority shareholders and upholding their right to demand a higher standard of corporate governance from controlling shareholders," read Mistry's one-page statement.

"In the last three years, both in conduct and in their statements to the world at large, the Tata Group's leadership has shown scant respect for the rights of minority shareholders. It is time the Group's management introspects and reflects on its conduct as it embarks on future actions," he said.

Mistry said he was humbled by the NCLAT order, which after "review of the enormous material on record, recognized the illegal manner in which I was removed and the oppressive and prejudicial conduct of Ratan Tata and other Trustees".

The former chairman said recent media reports attributed to Ratan Tata and others questioning the NCLAT judgment ahead of an important hearing in the Supreme Court, "profess an interpretation of corporate democracy as being one of brute majoritarianism with no rights for minority stakeholders". "The question in these legal proceedings is whether the oppressive actions of a majority that stifles minority shareholders is beyond reproach and outside judicial oversight." Globally, including in India, company law has evolved to protect the rights of minority shareholders and strengthen corporate governance, Mistry said.

Ratan Tata and other appellants are likely to mention the matter before the Chief Justice of India in the Supreme Court on Monday and seek an early listing of their appeals.



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