Directors of Tata Motors backed Cyrus Mistry, who was ousted in October as chairman of Tata Group by Tata Sons, the holding company for the conglomerate,
the
Financial Times
reported.
The board issued a statement that did not mention Mistry by name but said the “management of the company and its subsidiaries have the full confidence and support of the independent directors,” the article said.
“However, Mr. Mistry's future at Tata Motors is in doubt because Tata Sons — which has a 27 per cent stake in the carmaker according to Bloomberg data — has called a shareholder meeting to vote on his removal as a director,” the
FT
article said.
Mistry has been opposed by his predecessor as Tata Sons chairman, Ratan Tata, who has now serving as interim chairman. Robin Zhu, an analyst at Bernstein Research, told the
FT
, “You have a turf war between Ratan and Mistry and I don't think there is much question of who will win.”
The conflict “includes broad efforts to remove Mr. Mistry from the boards of key group operating companies,” the
FT
article said.
“Independent directors on the operating companies' boards are having to take sides,” the report said. “Tata Sons will seek to remove independent directors who support Mr. Mistry, said one person familiar with the plans.” (Source:
Financial Times
, Nov. 15, 2016.)
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