Given the role of independent directors on Tata group companies, Mistry should be thankful that he was shown the door and not the window, said SP Batliwalla, a shareholder at the extraordinary general meeting of Tata Consultancy Services held here on Tuesday .
The dirty linen washed in public by the warring corporate titans Ratan Tata and Cyrus Mistry was torn apart. Of the 38 shareholders who spoke at the event just five supported Mistry.
Anil Hirani, a shareholder said Ishaat Hussain and N Chandrasekhar (CEO and Managing Director of Tata Consultancy) who were among the board which unanimously decided to remove Mistry have been rewarded with inclusion in Tata Sons board.
Adil Polad Irani, the most vociferous supporter of Mistry, wanted to know one reason from directors why Mistry needs to be removed even as the company’s performance under his tenure has been much better than previous years.
Questioning the independence of independent directors who are showered with handsome compensations, Irani said the ‘learned’ independent director decorating the dais are supporting Ratan Tata because Tata Sons tells them to do so.
The entire explanatory statement provided by TCS is vague on reasons to remove Mistry while he has distributed a pamphlet to investors with 40-point on the future challenges and opportunities for the company.
“I would have expected a point-by-point rebuttal from the company. Four years back when Tata Sons said Mistry was best to head Tata Group the entire independent directors supported him. Now the same independent directors are opposing him without giving any reason,” said Irani once a staunch supporter of Rata Tata who was hearing him at EGM in person.
“TCS says Mistry has lost Tata Sons trust. Can any of the director explain what Mistry has done to lose promoters’ trust. Is the company hiding something from investors,” said Irani quoting recent Ratan Tata statement that the ‘real reason (for removing Mistry) will go with him to grave’.
KK Shah, a shareholder was more worried about the erosion in brand value of Tata companies and wanted the board to involve corporate giants like (Kumar Mangalam) Birla, (Anand) Mahindra and (Rahul) Bajaj for an early resolution of the infighting.
“Sir, you can even call (Narendra) Modi he is capable of solving all problem,” he summed up putting a big smile on Rata Tata’s face.
Most of the shareholders felt that such a dire situation for the 149-year-old company would not have come if it had appointed Noel Tata to lead the group, said a shareholder. Prashant Javeri, an advocate by profession, cautioned both the warring groups not to take the battle to courts as it will turn out to be costly and time consuming affair. With few brickbats and many supporters, Aman Mehta, who chaired the EGM, wrote of all allegations and justified Mistry’s ouster as he has lost promoters’ confidence.