Tata Trusts Boardroom Battle, More Action Expected?

The Tata-Shapoorji Pallonji corporate saga 2.0 cost Mehli Mistry, a confidant of late Ratan Tata, twin seats at the Sir Dorabji Tata Trust, Sir Ratan Tata Trust as board member exposing corporate India’s disruptive ruthlessness. “Morality, friendship, ethics, middle-class values hold no seat at India Inc’s boardrooms particularly, its upper echelons. Power and ego rules. Familial ties notwithstanding, Tata-SP’s corporate saga 1.0 witnessed Cyrus Mistry’s removal from Tata Sons by Ratan Tata himself. Now 2.0 bears witness to Mehli Mistry being deboarded by Tata’s brother Noel, with concurrence by his own fast, thick buddy as well, to likely be followed by more boardroom exits. Cash-strapped SP engaged in bid to marginally dilute rightful stake of 18.37% in Tata Sons, nudged for public listing, thus far stymied since the late Ratan Tata’s reign. Another source noted, “Ambiguity between charitable vs business operations of Tata group companies needs clarified settlement. Mistry may not legally challenge removal over prolonged litigation involved as PM Modi’s advice for stability, communicated through Amit Shah, may see Noel Tata assume topnotch positioning, clear authority making shareholders breathe easy. Probability of a happy ending for both prominent stakeholders – Tatas and SP – is on the cards.  One thing is clear: decisions by consensus on Tata boards are a thing of the past. With Noel Tata’s ascension, one can expect more changes at the boardroom level.