NCLT TO PRONOUNCE ORDER ON TATA-MISTRY BATTLE TODAY
The Mumbai Bench of the National Company Law Tribunal (NCLT) will pronounce its order on theTata-Mistrybattleon Wednesday. Thelegalfeudhas been replete with war of words, with both sides exchanging barbs through defamation suits, hundreds of affidavits and references to past email sand letters, unprecedented in the Tat a Group's150-year-oldhistoryand in the history of corporate India. The judge' s order wills eta landmark precedence for corporate feuds particularly, for promoter-ledfirms. Business Standard looks back at the 18-month-oldbattle.
MISTRY FIRMS’ ALLEGATIONS AGAINST TATA SONS AT NCLT
Mismanagement at Tata Sons and oppression of minority shareholders
Corporate governance breakdown and excessive interference by Tata Trusts Illegal removal of Cyrus Mistry Abuse of Articles of Association Violation of insider trading norms
TATA SONS’ RESPONSE
Mistry’s removal not illegal Mistry was acquainted with the affairs of Tata Sons
Mistry was quite about the alleged mismanagement during his tenure as chairman
Allegations against Ratan Tata misconceived
Flawed business decisions do not tantamount to oppression
ALLEGATIONS AGAINST RATAN TATA
The chairman who never retired It was on the behest and influence of Ratan Tata that Tata Sons’ board removed Mistry
Tata was seeking to control through abuse and misuse of the Articles of Association
Was responsible for aviation misadventure, Nanoprojectand flawed global acquisition strategy
RATAN TATA’S REBUTTALS
It was Mistry who extended Tata an invitation to be chairman emeritus
Mistry actively sought guidance from Tata and his suggestions were not unsolicited
Mistry’s removal as a chairman was led by trust deficit among Tata Sons directors
Foreign acquisitions and Tata Sons' investment,in the aviation sector was a unanimous decision of the Tata Steel board
WHAT MISTRY FAMILY WANTS NCLT TO DO
Wind up the Tata Sons board and appoint an administrator or a retired SC judge; appoint new independent directors
Restrain the so-called interim chairman from attending any meeting of the board of directors
Direct Tata Sons to not issue any security which could lead to a dilution in the equity capital
Appoint an independent auditor to conduct investigations into the transactions of AirAsia
Restrain Tata Sons from entering businesses, or acquiring any new business, without the consent of the tribunal
Restrain the trustees from interfering in the affairs of Tata Sons and Tata group companies