25 October 2016 Current Affairs: The board of Tata Sons Ltd has replaced Cyrus Mistry as Chairman of the India’s largest conglomerate and named his predecessor Ratan Tata as the interim chairman for four months on 23 October 2016.
No reason was given for removing Mistry, but it is believed there were differences over management style and his approach of selling assets after writing them down.
Mistry, 48, who replaced Tata, 78, as chairman in December 2012, was only the sixth group Chairman in nearly 15 decades and the first from outside the Tata family. He will remain a director of the individual companies, though his tenure as Chairman is the shortest so far at the group.
Cyrus Pallonji Mistry Appointed as Chairman of Tata Sons
Besides, the board also named a five-member search committee, which includes Tata, to choose a successor within four months. The other members of the committee include 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 constituted with a mandate to complete the process in four months. Also, there will be no change at the level of CEOs in the operating company.
Tata will be interim head of the group while a Selection Committee appointed by the company searches for a replacement.