in ,

NCLAT restores Cyrus Mistry as chairman of Tata Group, N Chandrasekaran's appointment held illegal – Economic Times, The Times of India

NCLAT restores Cyrus Mistry as chairman of Tata Group, N Chandrasekaran's appointment held illegal – Economic Times, The Times of India


The order will take effect after four weeks and Tata has the option to challenge it.

Bloomberg|

Updated: Dec 110, (**********************************************, (************************************************************. PM IST

**

BCCL

An appeals court upheld charges byCyrus Mistrythat he was improperly ousted as chairman of the $ (billion) **************** (Tata Group) , paving the way for his reinstatement and marking a loss for the conglomerate’s chairman emeritus Ratan Tata.

A two-judge panel of India’s National Company Law Appellate Tribunal on Wednesday said Ratan Tata’s actions against Mistry were oppressive and the appointment of a new chairman was illegal. The court also saidTata Sonsmove to turn private from a public company was unlawful and ordered a reversal.

The order will take effect after four weeks and Tata has the option to challenge the ruling in the Supreme Court.

**************

“While this is bound to be contested in the highest court, the legal battle will be negative for investors in the near term,” said Dharmesh Kant, Mumbai-based head of retail research at Indianivesh Securities Ltd. “The order is extremely disturbing for the Tata Group as it raises questions on their corporate governance.”

The verdict adds a new headache for the salt-to-software group, which faces business challenges including a cost-cutting drive at its Jaguar Land Rover Automotive Plc unit and the impact of an economic slump back home in India.

Shares of Tata Motors Ltd. and Tata Consultancy Services Ltd. fell after the verdict, dragging down the main equity gauge. Representatives for the Tata Group and Mistry’s office couldn’t immediately comment. “Investors will surely reduce their group exposure,” said Sameer Kalra, Mumbai-based strategist at Target Investing. “All strategic changes which happened under the current chairman will be paused till the Supreme Court verdict is out.”

Mistry was ousted as chairman of Tata Sons in October (**********************************************, about four years after he had taken over the position from Ratan Tata. He turned to the National Company Law Tribunal to overturn the dismissal and, following an unfavorable ruling, appealed to the NCLAT seeking to expunge disparaging remarks against him in the original order.

****************** (Also ReadTata Group stocks tank after NCLAT order restoring Cyrus Mistry NCLAT judgement over Cyrus Mistry’s removal as Tata Group Chairman on Wednesday

Tata Group, LinkedIn among firms adopting neuro research marketing ‘

Tatas Group begins hunt for a partner for Jaguar, approaches Geely & BMW

Will ask my team to look at bidding for Air India: Tata Group chief

******** commenting feature is disabled in your country / region.

Copyright © Bennett, Coleman & Co. Ltd. All rights reserved. For reprint rights: Times Syndication Service ******************************************************** (Read More) **************

******************
01575879

What do you think?

Leave a Reply

Your email address will not be published. Required fields are marked *

GIPHY App Key not set. Please check settings

Crypto market outlook ‘neutral’ at best, says new SFOX report

Japanese journalist Shiori Ito is awarded damages in landmark rape case – The Washington Post, The Washington Post

Japanese journalist Shiori Ito is awarded damages in landmark rape case – The Washington Post, The Washington Post