Cyrus Mistry has decided to move Bombay High Court against Tata Sons’ decision to remove him from Chairman’s post+ .
In a surprise development on Monday evening, Cyrus Mistry+ was sacked as chairman of Tata Sons. He was replaced by Ratan Tata.
The decision was taken at the board meeting of Tata Sons.
The board named a five-member search committee, which includes Tata, to choose a successor to Mistry within four months.
Mistry’s family firm Shapoorji Pallonji Group has 18.4 per cent in Tata Sons — the holding company of $100-billion salt-to-software conglomerate.
Mistry, 48, who replaced Ratan Tata, 78, as chairman in December 2012, was only the sixth group Chairman in nearly 15 decades and the first from outside the Tata family. He will remain a director of the individual companies, though his tenure as Chairman is the shortest so far at the group.
Meanwhile, Ratan Tata in a letter to employees said that he had agreed to return as chairman in the interest of the stability of the group .
“A new management structure is being put in place and a selection has been constituted to identify the next chairman of Tata Sons,” Ratan Tata wrote in the letter.
“The committee has been mandated to complete the process in four months. In the interim, the board has requested me to perform the role of Chairman and I have agree to do so in the interest of stability of and reassurance to the Tata group,” he wrote.
Ratan Tata also wrote to Prime Minister Narendra Modi on Monday informing change in the top management of the group.