Tata Sons on Thursday said that ousted chairman Cyrus Mistry must resign from all group companies and deplored the manner in which he sought the support of independent directors of Indian Hotels to continue as its chairman.
“Mistry conveniently forgets that he was appointed as the Chairman of the Tata operating companies by virtue of and following his position as the Chairman of Tata Sons,” Tata Sons said in a nine-page statement.
“Therefore, it was fair expectation of Tata Sons that Mistry would gracefully resign from the boards of other Tata companies on being replaced from the position of the Chairman of Tata Sons,” it said.
“This expectation was in line with convention, past practice as well as the Tata governance guidelines that were approved and adopted by Tata Sons under the aegis of Mistry.”
Such a departure from these requirements and conduct since Mistry was replaced as Chairman of Tata Sons by Ratan Tata in an interim position demonstrates his absolute disregard of longstanding Tata traditions, values and ethos, the statement said.
Earlier, Tata Sons replaced Cyrus Mistry with Ishaat Hussain as the chairman of Tata Consultancy Services and issued a notice for a sharehlders’ meeting to consider his removal as a director of the compampany as well.