Company stock hit by surprise decision.
In an unexpected move, Cyrus P. Mistry, the Chairman of Tata Sons – the umbrella group that runs Tata Group – stepped down after serving the multinational conglomerate for four years.
According to reports, Mistry’s position will be taken over by former chairman Ratan Tata until a new chairman is nominated.
The swift decision to name Tata as the interim Chairman was taken during a board meeting held in Mumbai on Monday.
The board meeting was attended by a committee comprising of Tata, Venu Srinivasan, Amit Chandra, Ronen Sen and Lord Kumar Bhattacharyya. The details of the decision were posted in an article that appeared in the Articles of Association of Tata Sons.
The article says, “Tata Sons today announced that its Board has replaced Mr. Cyrus P. Mistry as Chairman of Tata Son.”
Tata Group stocks fell after the shocking decision to remove Mistry.
According to Business Standard, the unexpected decision of Mistry to step down will have serious implications for Tata stocks as it had seen 515% growth under the aegis of Mistry.
Mistry is the scion of Shapoorji Pallonji Group, an Indian business conglomerate in India with interests in construction, real estate, textiles, engineering goods, home appliances, shipping, publications, power, and biotechnology. Shapoorji Pallonji Group holds 18 per cent share in Tata Group.