NCLAT reinstates Cyrus Mistry amidst a chaotic stance

Tata group is the majority stakeholder in the conglomerate ‘Tata Sons’ which has diverse business portfolios across the aisle from salt to airlines, the company is everywhere and is one of the longest surviving companies in the Indian history which was started by Jamsetji Tata, and he is also regarded as the legendary ‘father of the Indian industry,’ with that said there is a lot of history involved in the management of the company and not all of that has a pretty face to it, one of the incidents that happened in the past was the ousting of an Executive Chairman in the form of Cyrus Mistry from the group’s board of directors as well and then reiterated the company profile from public to private giving the majority stakeholders an executive power under Art. Seventy-five of the companies act to transfer non-preferential shares to ordinary shares and then to any stakeholder deemed fit by the majority holders. The National Companies Law Appellate Tribunal (NCLAT) came down heavily in some of those issues and has asked the conglomerate to reinstate Mr. Mistry as the EC of the group and deemed his ousting as illegal while also giving directions for the future of action or inaction in this case with regards to the policy of governance in the company’s hierarchy as well as the bullying of minority shareholders by the majority and to top that off, the Tribunal asked the group to reinstate Mr. Mistry as a director on the board with immediate effect thus churning the pile for the group of companies that haven’t been performing to the maximum potential of its abilities in the past, and this political turmoil will also hurt their capacities which were evident in the trading sessions at the stock market as it lost about 3% in its market capitalization in the ending minutes of trading in the day.