Ratan Tata in letter says will maintain 'Tata culture and value system'
- Author: Darren Santiago Nov 03, 2016,
Nov 03, 2016, 1:32
Kumar was also a member of the Group Executive Committee (GEC), formed by ousted Tata Sons Chairman Cyrus P. Mistry, and was dissolved immediately thereafter, on October 24.
Soon after Mistry's ouster last week, Tata Sons had set up a panel to select the next Tata group chairman. Tata Sons sought the permission of the Reserve Bank to pay half the acquisition price as requested by DoCoMo. Hence, the Tatas alone had applied to the RBI for approval, which was declined.
Tata also sought to calm nerves among the group employees by saying that the leadership of the various companies are empowered to serve with the same degree of passion and ethical commitment as they have done in the past.
DoCoMo, in April 2014, made a decision to exit the joint venture that struggled to grow subscribers quickly and sought Rs 58 per share or Rs 7,200 crore from the Tatas.
After reviewing Mistry performance, the Board in a meeting convened on June 28, had unanimously recognised his "contribution" to the group companies. The statement maintained that all the decisions were "collective decisions" and that Mistry's actions were consistent with all such collective decisions.
The GEC, chaired by Mistry, comprised executives of Tata Sons and its main task was to offer strategic and operational support to the chairman of Tata Sons.
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"Insinuations that the Docomo issue was handled under the watch of Mistry in a manner inconsistent with Tata culture and values are baseless".
It, however, refused to divulge any more details, said The Hindu report. Other companies which contribute substantially to the value of holding by Mistry's family in Tata Sons are Tata Motors (Rs 7,983 crore), Tata Communications (Rs 1,500 crore), Tata Steel (Rs 2,279 crore), Titan (Rs 1,281 crore) and Tata Power (Rs 1,234 crore).
"Throughout the above process, Ratan Tata and N.A. Soonawala, Trustee, were kept informed and they participated in separate meetings held with Cyrus Mistry", said the statement, seeking to clearly state that the top management was kept in the loop. Subsequently, Mistry had written to the directors a day later that Tata Chemicals "still needs tough decisions about its United Kingdom and Kenya operations".
"Tatas and as advised by legal counsel", it said.
It had presented the Tata Sons' board with information on the deal, he said, and the board had approved the transaction in June.
Today, Mistry said all the actions were taken in concurrence with Ratan Tata and Tata Sons' board.