Ousted Chairman Mistry resigns from Tata companies amid fight with scion

Bloomberg

Ousted Tata Sons Ltd. Chairman Cyrus Mistry resigned as director of group companies as the units prepared to host shareholder meetings to remove him from the boards in a brawl for control of the $100 billion group.
Mistry stepped down as a director in Tata Steel Ltd. and Indian Hotels Co., and as chairman of Tata Motors Ltd., the three companies said in stock exchange filings on Monday. Tata Power Ltd., Tata Chemicals Ltd. and Tata Global Beverages Ltd. are yet to announce the change to the exchanges. Shareholders of Tata Consultancy Services Ltd. last week removed Mistry as a director.
Mistry’s decision to step down is the latest twist in the battle that began with his sudden removal as head of India’s biggest conglomerate.
Ratan Tata, the patriarch who nominated Mistry for the group chairman job in 2012 and replaced him in October, is re-asserting control at the steel to cars and software services conglomerate. After weeks of bitter public accusations and recriminations between the two, Mistry on Monday said he plans to go to an “external forum” to rule on his firing.
“Having deeply reflected on where we are in this movement for cleaning up governance and regaining lost
ethical ground, I think it is time to shift gears, up the momentum, and be more incisive in securing the best interests of the Tata Group,” Mistry said in the statement. “I have decided to shift this campaign to a larger platform and also one where the rule of law and equity is upheld.”
Closely-held Tata Industries Ltd. also voted to remove Mistry. Five Tata Group companies, including Indian Hotels, Tata Steel and Tata Motors Ltd., are scheduled to host extraordinary general meetings starting
from Tuesday to oust Mistry. The statement was issued after Mistry attended a meeting of the board of Tata Sons on Monday.
Ratan Tata has said the 48-year-old Mistry’s continued presence as director is a “ serious disruptive influence” on company boards. Mistry has said he was pushing to transform the business empire into a more prudent enterprise than the globetrotter that bought Jaguar Land Rover under the previous chairman.
“Sanity has prevailed,” said Arun
Kejriwal, founder of advisory firm
Kejriwal Research & Investment
Services Pvt. “Now he has chosen an honorable exit for himself. The avenue of the courts remain open for him. It
is for him to decide the course for action hereafter.”