New Delhi: Soon after the National Company Law Appellate Tribunal (NCLAT) passed an order to restore Cyrus Mistry as the Chairman of Tata Group, the former chairman on Wednesday issued a statement saying the NCLAT order is a victory for the principles of good governance and minority shareholder rights. He also said that the outcome of the appeal is a vindication of his stand.
“Today’s judgment isn’t a personal victory for me, but is a victory for the principles of good governance and minority shareholder rights. The outcome of the appeal is a vindication of my stand,” Mistry stated.
The statement from Mistry comes after the two-judge bench of the NCLAT, headed by SJ Mukhopadhaya, held the appointment of Natarajan Chandrasekaran as illegal.
“For over fifty years, the Mistry family, as the significant minority shareholder of Tata Sons, has always endeavoured to play the role of a responsible guardian of an institution that the entire nation is proud of,” he further stated.
He also said that his endeavour as Executive Chairman had always been to establish a culture and processes that promote effective board governance to create long term stakeholder value.
Saying to forget all past bitterness, Mistry in the statement highlighted that it is now time that all of the employees work together for sustainable growth and development of the Tata Group.
“For the Tata Group to prosper as an institution, it is important that the management of individual companies, their Boards, the management of Tata Sons, the Board of Tata Sons and the shareholders of Tata Sons, all work harmoniously within a robust governance framework, that in substance and form, protects the rights of all stakeholders, including shareholders, investors and the Tata Groups employees, who represent the strongest asset of the Group,” Mistry said.
In a massive victory for Mistry, the NCLAT on Wednesday ordered to restore him as executive chairman of Tata Sons.
On the other hand, Tata Sons stated that Tata it will take appropriate legal recourse against the NCLAT judgement to reinstate ousted Chairman Cyrus Mistry. It stated that it was not clear how the order sought to over-rule decisions taken by its shareholders and those of listed group firms at ‘validly constituted shareholder meetings’.
Tata Sons strongly believes in the strength of its case and will take appropriate legal recourse, it said in a statement.
(With inputs from agencies)