In a very unexpected and shocking move on Monday, Cyrus Mistry, the Chairman of Tata Sons was sacked after the board meeting. This move comes four years after Mistry was appointed as the chairman of the Tata Sons, the company behind Tata Group, a $103 Billion group with presence in sectors ranging from Automobiles to food.
Though, more details on the development are still awaited, sources close to the ones sitting in the boardroom where the decision was taken, suggested that the decision was taken with a long term vision of a positive growth. However, none of them mentioned the real reason which could have led to the sacking of Cyrus Mistry.
In a letter to the employees after the announcement, Ratan Tata stated that he has agreed to become the interim chairman of Tata Sons for the time being for the stability of the group. He further added that the time given to the board members to elect the next chairman is just 4 months and within the given time, there will be a new person heading the group. The team which has been assigned the task of appointing the next chairman of Tata Sons includes Ratan Tata, Venu Srinivasan, Amit Chandra, Ronen Sen and Lord Kumar Bhattacharyya.
Ratan Tata still has the majority of stakes in the company, with over 66% stakes of the group owned by a number of philanthropic trusts owned by members of Tata Family, the decision of new chairman will also have Ratan Tata’s opinion on a big level.