Tata fight gets complicated, Mistry backed by Indian Hotels board
- Cyrus Mistry received major support from the of Tata group's hospitality arm Indian Hotels Co Ltd unanimously
- After ousting Mistry from Tata Sons, Tata Trusts is looking to remove him from the operating companies as well
Follow
"There was unanimous support by the board members to Mistry and his continuance as chairman of the company," a source in the know said.
Just as independent directors of the firm, including banker Deepak Parekh and Nadir Godrej, met ahead of a scheduled board meeting, Tata security personnel roughed up journalists and lensmen gathered outside Bombay House to report the meetings.
The vote of confidence by the board of IHCL is a boost to Mistry. The board of Tata Chemicals is scheduled to meet on November 10 to consider second quarter results and Tata Motors will do so on November 14.
In a BSE filing, IHCL said, "The independent directors unanimously expressed their full confidence in Chairman Cyrus Mistry and praised steps taken by him in providing strategic direction and leadership to the company."
The other independent directors of IHCL include Gautam Banerjee (of Blackstone Group), Keki Dadiseth (ex-HUL MD), Vibha Rishi Paul (former executive director, brand and human capital, Max India) and Ireena Vittal (former partner with McKinsey & Co).
Besides Mistry, his sibling Shapoor Mistry is a director on the board of IHCL, as also his confidant and CEO Rakesh K Sarna. Ratan Tata-led interim management of Tata Sons is seeking to oust Mistry from his positions in the operating group firms, including IHCL and Tata Motors.
As on September 30, 2016, the promoter group controls 38.65 per cent stake in IHCL, out of which Tata Sons has 28.01 per cent.
