Tata Sons today replaced Cyrus P Mistry as chairman of Tata Sons and brought in former chief Ratan Tata as interim chairman.
The decision was taken at a board meeting held today, according to press release issued by the group.
The board has constituted a selection committee to choose a new chairman.
The committee comprises Ratan Tata, Venu Srinivasan, Amit Chandra, Ronen Sen and Lord Kumar Bhattacharyya, as per the criteria in the articles of association of Tata Sons. The committee has been mandated to complete the selection process in four months.
According to CNBC TV18, Tata Sons board took decision to replace Mistry based on recos of principal shareholders. However, there will be no change in the CEOs positions at operating level in the group.
The report also said that Tata Sons board in its collective wisdom decided to replace Cyrus Mistry as chairman.
Mistry had recently said that he is "not embarrassed" to admit that exits for the group, which has exited over 40 businesses in 20 years, are usually the last resort and the conglomerate does not take decisions about exiting through a "short-term financial lens".
Mistry had then cited the turnaround and growth of Tatas' jewelery brand Tanishq and its IT arm Tata Consultancy Services as examples "within the group where persistence and a long-term perspective have paid off."
"And as we push the boundaries, there will always be failures, and we must expect these as part of our entrepreneurial model. Of course, critics could argue we could have been more aggressive with our exists and they most probably would be right if we were to take all our decisions through a short-term financial lens," Mistry said here last week.
Mistry was the sixth group chairman of the Tata group. He was appointed as the Chairman of the Tata Sons board in December 2012. He has been a director of the company since 2006.
In addition to being group chairman, Mistry was also the chairman of leading Tata group companies including Tata Steel, Tata Motors, Jaguar Land Rover Automotive, Tata Consultancy Services, Tata Power Company, The Indian Hotels Company, Tata Global Beverages, Tata Chemicals, Tata Industries and Tata Teleservices.
Mistry was earlier managing director of the Shapoorji Pallonji Group. Under his leadership, Shapoorji Pallonji’s construction business grew into a billion-dollar enterprise, evolving from pure-play construction to execution of complex projects in the marine, oil and gas, and rail sectors, across a number of international geographies.
Mistry graduated with a degree in civil engineering from Imperial College, London, UK, in 1990. In 1997, he received an MSc in management from the London Business School. He is a recipient of the ‘Alumni Achievement Award’ from the London Business School, and is a fellow of the Institution of Civil Engineers, London.
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Updated Date: Oct 24, 2016 18:47:42 IST