InvestorQ : What does Cyrus Mistry being reinstated mean for the Tata Group? Will it have implications for Mr. Chandrasekharan?
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What does Cyrus Mistry being reinstated mean for the Tata Group? Will it have implications for Mr. Chandrasekharan?

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2 years ago
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On 18 December the National Company Law Board Appellate Tribunal (NCLAT) dismissed the removal of Cyrus Mistry from the post of executive chairman of Tata Sons as illegal and ordered him to be restored to his position. The NCLAT also ruled that the appointment of N Chandrasekharan as the Chairman of Tata Sons was also not valid.

Let me give you a quick background first. Cyrus Mistry was appointed as the chairman of Tata Sons in 2012 but was removed from this position in October 2016 for acting against the interests of the company and the Tata group. Subsequently, the Cyrus family companies that own a big share in Tata Sons approached the NCLT against this removal terming the removal as illegal. However, the NCLT had dismissed the petition at that point of time. Subsequently, Cyrus had approached the NCLAT against this order and had also outlined the detailed cases of misfeasance by the Tata board members. The decision of the NCLAT was announced on 18 December.

The NCLAT order is clear that this will not be effectively but only after a gap of four weeks. That is essential to give Ratan Tata time to appeal against this order if so required. If Ratan does not appeal or if he does not get a favorable order from the court, then Chandra will have to be removed from that position and Mistry has to be reinstated.

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