Comments
Markets regulator SEBI and the stock exchanges are investigating the dispute between Tata Sons and Cyrus Mistry over the latter’s ouster from Chairmanship of Tata group board.
The BSE and the NSE have asked Tata Communications, Tata Power, Tata Teleservices, Tata Steel and Indian Hotels to explain the allegations made by Mistry in his letter to the Tata Sons board.
“Cyrus Mistry has alleged possible breach of corporate governance norms within various Tata Group companies. There is also mention of possible insider trading.
“We want to know the details,” said a top SEBI official on conditions of anonymity.
The BSE has sent an official notice seeking explanation on the ₹1,18,000 crore write-off claimed by Mistry in his letter.
Other issuesMistry in his letter to the board has raised several issues, including the role of Ratan Tata as an alternate centre of power after the company’s articles of association were amended.
“ I write this letter to the board to emphasise the total lack of corporate governance and to point out the failure on the part of the directors to discharge the fiduciary duty owed to stakeholders of Tata Sons and the Group companies.
“All this does not augur well for the future of the Group,” Mistry said.
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.