Tata Motors avoids commenting on Mistry's future as chairman | Reuters

By Aditi Shah and Abhirup Roy | MUMBAI MUMBAI India's Tata Motors (TAMO.NS), owner of British carmaker Jaguar Land Rover, posted a second-quarter net profit of 8.48 billion rupees ($125 million) on Monday but did not comment on the power struggle between its chairman Cyrus Mistry and Tata Sons.The company said only that its management had the 'full confidence' of the board's six independent directors.Mistry is still the chairman of several key Tata companies including Tata Motors and Tata Steel (TISC.NS) after his ousting from the chairmanship of Tata Sons, the holding company of all the operating companies of the Tata group.The Tata group is now seeking to remove Mistry from Tata Motors, a battle that has also revived debate around India's corporate governance and Tata's complex structure.Tata Motors did not address the issue in a statement issued on Monday, however, noting simply that all decisions taken by the board of Tata Motors on strategy and operations have been 'unanimous' and executed by the chairman and the management.The statement came on the same day the company posted its results for the three months ended Sept. 30. It made a consolidated net profit of 8.48 billion rupees, which compared with a net loss of 17.40 billion rupees in the same period last year, on total income from operations up 7 percent at 670 billion rupees

Reuters November 15, 2016 00:15:08 IST
Tata Motors avoids commenting on Mistry's future as chairman
| Reuters

Tata Motors avoids commenting on Mistrys future as chairman
 Reuters

By Aditi Shah and Abhirup Roy
| MUMBAI

MUMBAI India's Tata Motors (TAMO.NS), owner of British carmaker Jaguar Land Rover, posted a second-quarter net profit of 8.48 billion rupees ($125 million) on Monday but did not comment on the power struggle between its chairman Cyrus Mistry and Tata Sons.The company said only that its management had the "full confidence" of the board's six independent directors.Mistry is still the chairman of several key Tata companies including Tata Motors and Tata Steel (TISC.NS) after his ousting from the chairmanship of Tata Sons, the holding company of all the operating companies of the Tata group.The Tata group is now seeking to remove Mistry from Tata Motors, a battle that has also revived debate around India's corporate governance and Tata's complex structure.Tata Motors did not address the issue in a statement issued on Monday, however, noting simply that all decisions taken by the board of Tata Motors on strategy and operations have been "unanimous" and executed by the chairman and the management.The statement came on the same day the company posted its results for the three months ended Sept. 30. It made a consolidated net profit of 8.48 billion rupees, which compared with a net loss of 17.40 billion rupees in the same period last year, on total income from operations up 7 percent at 670 billion rupees.

"Tata Motors ... generates a substantial profit and revenues, so it is important for Tatas to have control over the board," said Shriram Subramanian, managing director of InGovern Research Services, a firm advising institutional investors.Tata Sons on Thursday removed Mistry as chairman of Tata Consultancy Services (TCS) (TCS.NS), 73 percent controlled by the group and the conglomerate's star performer. But it has struggled to get him out at other subsidiaries where ownership is closer to 30 percent.Boards at Tata Steel and Tata Chemicals voted to keep Mistry as chairman last week.

Directors of Tata Global Beverages (TAGL.NS), which co-owns and runs Starbucks (SBUX.O) coffee stores across India, meet on Tuesday.If the Tata Motors board does not oust Mistry, Tata Sons will have to turn to shareholder meetings. Tata Sons has already called for extraordinary general meetings across its companies to remove Mistry as a director, including Indian Hotels Co (IHTL.NS), Tata Chemicals Ltd (TTCH.NS) and Tata Motors.Tata Sons has blamed Mistry's abrupt exit on what it called breach of trust and poor performance, accusing him of eroding shareholder value. It has also said Mistry tried to reduce the role of Tata Sons, controlled by a series of charitable trusts.

Mistry has argued he tried to create internal barriers for better governance - a move that would reduce the Tata trusts' involvement in the operational issues of group companies, which he said should be controlled by their own boards of directors.The Tata trusts collectively own about two thirds of Tata Sons, while infrastructure company Shapporji Pallonji, owned by Mistry's family, is a minority shareholder in Tata Sons and he remains a director on the board of the holding company."A philanthropy running a commercial business creates its own paradoxes," said Institutional Investor Advisory Services, a proxy advisory, in a note about the feud.Tata Sons said on Sunday said it was "crucially important" for the board members, including independent directors, to consider the future of Tata companies and its stakeholders. A spokesman declined to comment further. (Additional reporting by Promit Mukherjee; Editing by Stephen Coates, Greg Mahlich)

This story has not been edited by Firstpost staff and is generated by auto-feed.

Updated Date:

also read

German police arrest Iraqi rape suspect, leaders warn against backlash
| Reuters
World

German police arrest Iraqi rape suspect, leaders warn against backlash | Reuters

BERLIN German police have detained an Iraqi migrant for suspected rape only days after an Afghan refugee was held in a separate rape and murder case, and the government warned against a political backlash to such crimes.The two cases threaten to fan anti-migrant sentiment in Germany, which saw a record 890,000 people from the Middle East, Africa and elsewhere arrive last year. The anti-immigrant Alternative for Germany (AfD) party has grown in support while Chancellor Angela Merkel's popularity has suffered. Police said on Tuesday the Iraqi, 31, was detained in his refugee hostel on Monday on suspicion of raping a Chinese student and attempting to rape another in the western city of Bochum.The 17-year-old Afghan was detained on Friday on suspicion of raping and murdering a 19-year-old German student as she cycled home from a party in the southwestern city of Freiburg.The Iraqi man is accused of dragging the two Chinese students aged 21 and 27 into a bush and forcing himself on them in separate incidents on Aug

African states narrowly fail to stop U.N. gay rights envoy work
| Reuters
World

African states narrowly fail to stop U.N. gay rights envoy work | Reuters

By Michelle Nichols | UNITED NATIONS UNITED NATIONS African states narrowly failed on Monday for a second time to halt the work of the first U.N. independent investigator appointed to help protect gay and transgender people worldwide from violence and discrimination.The attempt was voted down in the U.N. General Assembly 84 to 77 with 16 abstentions, a month after African states made a similar unsuccessful move in the General Assembly's third committee, which deals with human rights.

Syrian suspect in Germany 'had ties to Islamic State'
| Reuters
World

Syrian suspect in Germany 'had ties to Islamic State' | Reuters

BERLIN A 22-year-old Syrian refugee arrested in Germany on Monday had ties to Islamic State, Germany's spy chief said on Tuesday, but intelligence sources said there was no evidence he was receiving orders from the militant group.Hans-Georg Maassen, head of the domestic intelligence agency, told German broadcaster ZDF that the arrest of suspect Jaber Albakr had probably prevented an imminent attack."We succeeded in preventing a terrorist attack just minutes before midnight," he said.