Lack of communication cost Cyrus Mistry his job?

Media sources said that Ratan Tata and Tata Sons were not informed about major business decisions

8:20 PM

In keeping with the practice of promoting Tata group company CEOs to the board of Tata group holding company, Tata Sons, Jaguar-Land Rover CEO Ralf Speth and Tata Consultancy Services (TCS) CEO & Managing Director N Chandrasekaran were on Tuesday appointed additional directors on the TSL board.

Ratan Tata, interim chairman of Tata Sons, said: “This is in recognition of their exemplary leadership at their companies.” 

Earlier, during the tenure of Ratan Tata, RK Krishnakumar, MD of Tata Tea, and JJ irani, MD of Tata Steel, had been promoted to the Tata Sons board. Similarly, late JRD Tata had appointed late Sumant Moolgaokar and late Darbari Seth on the board TSL.

8:00 PM

According to media reports, lack of of communication is the reason behind Cyrus Mistry's replacement.  CNBC-TV18, quoting sources, said that Ratan Tata & Tata Sons were not informed about major business decisions. Ralf Speth, CEO of Jaguar Land Rover and N. Chandrasekaran, CEO & Managing Director of Tata Consultancy Services (TCS), have been appointed as Additional Directors on the Tata Sons Board.

5:00 PM
Ratan Tata has said his appointment is for a short time and a new leadership will be in place soon. CNBCTV18, quoting sources said Noel Tata, Indira Nooyi are likely contenders for Tata Sons Chairman post. Speaking to CNBCTV18, Adi Godrej said that the turmoil is not good for Tata's reputation and Indian business. He said that it is going to be a difficult for Mistry's successor to take over given the current situation. Also, ET now says that Cyrus Mistry officie denied filing of caveats against Tata by Mistry. 

4:00 PM  Tatas have a  filed caveat in  the Supreme Court, Bombay HC & National Company Law Tribunal to prevent Cyrus Mistry from getting ex-parte order against his sacking. 

Cyrus Mistry on the other hand has filed four caveats at NCLT against  Ratan Tata, Tata Group and Tata Trusts.

3:30 pm Former Tata Sons chairman Cyrus Mistry has reportedly filed four caveats against Tata Sons, Ratan Tata and Sir Dorabji Tata Trust in the National Company Law Tribunal, CNBC-TV18 reported quoting sources.

According to several media reports, Shapoorji Pallonji Group wants to protect its 18.5 percent stake in Tata Sons and and  will file a case under the “oppression of minority shareholders and mismanagement” Section of Companies Act 397.

3:00 pm Ratan Tata asks group's heads to go about business as usual

The interim chairman of India's Tata group, Ratan Tata, said on Tuesday that company leaders should focus on running their respective businesses and not be distracted by the change in overall leadership at the conglomerate.

In a statement addressed to business heads that was released to media and talked about ongoing initiatives at the group companies, Tata said: "We will evaluate and continue to undertake those that are required to. If there is any change, they will be discussed with you."

Tata said that he had assumed the role of the interim chairman for stability and continuity so that there is no vacuum. "This will be for a short time. A new permanent leadership will be in place," he said.

2:30 pm A day after its nominee Cyrus Mistry was ousted as Chairman of Tata Group, Shapoorji Pallonji today said it is studying the "circumstances" and has not yet decided on taking legal recourse.

The single largest shareholder with 18.4 per cent stake in Tata Sons - the holding company of Tata Group, Shapoorji said it will make a statement on the course of action it chooses when such a thing becomes necessary.

"Neither the SP Group nor Mr Cyrus Mistry have made any statement yet. While the circumstances are being studied, there is no basis to media speculation about litigation at this stage. As and when a public statement becomes necessary, it would be made," the construction group said in an emailed statement.

1:00 pm: Ratan Tata broke his silence on Cyrus Mistry's ouster and said that move was not an ownership battle, Indian Today reported.

12:30 pm In an apparent statement to Tata Group employees Cyrus Mistry has denied reports of him suing Tata Sons for his sudden dismissal from the group.

"Events of the past 24 hours obviously involve an element of sensitivity if not surprise. They need time for being assessed. As and when a public statement becomes necessary, it would be made." 

"Neither the SP Group nor Mr Cyrus Mistry has made any statement yet. While the circumstances are being studied, there is no basis to media speculation about litigation at this stage," said the statement, according to an Economic Times report.

12:00  According to TV reports,  Ratan Tata assured all group CEOs of a stable enviroment at the conglomerate

He also said that group companies will see continuity in their strategies and assured them that Cryus Mistry's exit is not a cause of concern for the Tata Group.  Tata assured CEOs  that long term interests of group will get priority

11: 44 am A day after Cyrus Mistry was removed as chairman of Tata Sons, Ratan Tata met all group CEOs in a meeting on Tuesday. 

Tata addressed concerns that CEOs have raised regarding possible changes, according to CNBC-TV18. 

11: 00 am Tata Group's selection committee holds its first meet today to select the new Chairman. The names that are doing the rounds as possible replacementsinclude Noel Tata and Indira Nooyi.

10: 00 am Shares in  Tata Group companies dropped on Tuesday morning after the group said Ratan Tata will take over as interim chairman of Tata Sons after the board ousted Cyrus Mistry late on Monday.

At 10 AM, shares in Tata Consultancy Services  were down 0.7 pct, Tata Motors  dipped 0.5 pct, Tata Steel  slid 2.5 pct, Tata Power fell 1.8 percent, while Indian Hotels Co Ltd  dropped 2 percent.