The nomination and remuneration committee of the Tata Sons board recommends a raise for chairman Cyrus Mistry. It also discussed formalizing the governance structure between various entities in the group such as Tata Trusts, the trustees and boards and directors of group operating companies.
Ratan Tata, chairman of Tata Trusts, nominates Venu Srinivasan and Ajay Piramal as additional directors on the Tata Sons board.
At the annual general meeting of Tata Sons, Srinivasan and Piramal are confirmed as directors by shareholders.
Amit Chandra is nominated as a director in Tata Sons by Tata Trusts, which has the powers to recommend one-third of the board of directors in the holding company
Meeting of the board of Tata Sons. Mistry presents an updated version of a strategy document, which outlines plans till 2020.
Cyrus Mistry is ousted as chairman of Tata Sons and replaced by Ratan Tata as interim chairman. A search committee is constituted to find Mistry’s replacement
The group executive council (GEC), which advised the Tata Sons chairman, is disbanded. Nirmalya Kumar, Madhu Kannan and N.S. Rajan are asked to leave, while Mukund Rajan and Harish Bhat are retained
The Tata group files caveats in the courts seeking advance notice from Mistry, were he to initiate legal action. Ratan Tata calls for a meeting of Tata group chief executive officers. Also meets investors such as Life Insurance Corporation of India to assure them that it is “business as usual.”
Cyrus Mistry writes an email to the board of Tata Sons, which gets leaked. In his e-mail, Mistry warns of a potential $18 billion write-down faced by the group and alleges corporate governance violations.
Ratan Tata writes a letter to the staff of Tata group companies saying that the removal of Mistry was “absolutely necessary for the future success of the Tata group”.
Tata Motors Ltd defends and clarifies credit and accounting practices related to the Nano car and Tata Motors Finance, its vehicle finance arm. The company admits that project Nano continues to be a loss-making project because of a combination of several factors including project delays due to change in location of the factory, perception of being a ‘low-priced’ car, the volumes initially anticipated which did not materialise, and underutilisation of capacities.
Tata Sons releases a nine-page statement detailing reasons why Mistry was ousted. It accuses Mistry of betraying the trust reposed in him and seeking to control the main operating companies of the Tata group “to the exclusion of Tata Sons and other Tata representatives”.
Independent directors of Tata (Chemicals), including Nusli Wadia, back Mistry as chairman, citing their evaluation of his performance for the past couple of years.
Tata Sons moves resolutions to eject Mistry and Wadia as directors of (Tata Steel, Tata Chemicals and) Tata Motors.
Tata Sons says it will do whatever is necessary to deal with the fallout of Mistry ouster; asks independent directors to ensure future of Tata companies and interest of all stakeholders is protected. Mistry’s office rebuts charges that he was trying to gain control of Tata firms; says a new structure was created with an eye on improving transparency and reflects “generational change”.
Independent directors at Tata Motors give Mistry a tacit nod, but stopped short of an outright endorsement and refuse to take sides, saying the auto maker’s board was collectively responsible for all decisions relating to strategy and operations.
Cyrus Mistry questions Tata Son’s investments in certain companies, high public relations (PR) costs, the compensation of Ratan Tata and the practice of directors drawing commissions from operating companies.
Nusli Wadia writes a letter to Tata Sons directors, saying the move to seek his expulsion is “false, defamatory, baseless and libellous”, pointing out that the allegations were been made with an intent to harm his reputation. Gives Tata two days’ notice to withdraw resolution.
Nusli Wadia confirms differences with Ratan Tata over the continuation of Nano, which he claimed had proven to be a serious drain on the financial resources of the company. He denies any differences between workers, employees, managers or directors of Tata Motors, but alleges strong differences between Tata Sons and its “Interim Chairman”.
Cyrus Mistry steps down from the board of all Tata Group companies, including Tata Motors, with immediate effect, stating it was for the “best interests of the Tata Group”.
Nusli Wadia removed as independent director of Tata Motors Board of Directors. In an extraordinary general meeting, 71.2 per cent of the 69.93 per cent of participating shareholders voted for Wadia’s removal and 28.8 per cent against. Tata Sons presently holds 28.71 per cent stake in Tata Motors from a 26.98 per cent earlier stake by buying 50 million shares in a bulk deal at a 7 per cent premium per share.
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