Sir Ratan Tata is Back in Business as Chairman after the Board of Directors of Tata Group decided to Sack 48 years old Cyrus Mistry, who was handing more than 100 billion USD business. The board named a five-member search committee, which includes Tata, to choose a successor to Mistry within four months.
“Tata Sons announced its board has replaced Mr Cyrus P Mistry as Chairman of Tata Sons. The decision was taken at a board meeting held here today,” a Tata Sons statement said.
Mistry was chosen as Tata’s successor in November, 2011, and was appointed Deputy Chairman of Tata Sons, whose board he had entered in 2006. He was made chairman on the basis of his representation from Shapoorji Palonji, the largest shareholder in Tata Sons.
This decision came up as Tata Sons were unhappy with Mistry’s approach of shedding non-profit businesses, including the conglomerate’s steel business in Europe, and concentrating only on cash cows.
The board constituted a selection committee comprising Tata, TVS Group head Venu Srinivasan, Amit Chandra of Bain Capital, former diplomat Ronen Sen and Lord Kumar Bhattacharya. All of them, except Bhattacharya, are on the board of Tata Sons.
The committee has been asked to complete the selection process in four months.