Kranthi Kumar Budumuri, LLM, Symbiosis Law School, Pune
ABSTRACT
The removal of Cyrus mistry as chairman of Tata group in an unceremonious way goes down in the annals of corporate governance of India as one of the few cases that highlights the murky internal squabbles inside our large family owned businesses. There are several corporate governance principles and norms that were comprised in the entire fiasco at the top management level that includes fairness, transparency, succession planning in family owned companies, undue influence of promoters in company affairs, role of independent directors and committees etc. This paper is a critical analysis of the major issue involved in the entire fiasco and tries to bring about positive recommendations that could be learned from this fiasco so that the same scenario could be abated in the future.
Keywords: Cyrus Mistry, Tata Group, Promoters, Minority shareholders, Independent directors, board committees and corporate values.
