STOCK MARKET BSE NSE

Mistry's resignation must be read as a new beginning: IiAS 

Tata Group must also find an appropriate strategy to calm the discord --going to the courts will be detrimental for both sides, the advisory firm added.

Published: 20th December 2016 10:33 PM  |   Last Updated: 20th December 2016 10:33 PM   |  A+A-

tata_Reuters

Image used for representational purpose only. (File photo |Reuters)

By PTI

NEW DELHI: Ousted Tata Sons Chairman Cyrus Mistry's resignation from the boards of the remaining six listed Tata companies must be read as a new beginning to clean up some of the issues plaguing the governance structures across the group, proxy advisory firm IiAS said today.

In a dramatic turn of events, Mistry -- who was sacked as Tata Sons Chairman on October 24 -- yesterday quit from the boards of six listed Tata group companies.

"Cyrus Mistry's resignation must not be seen as an end in itself -- instead it must be read as a new beginning to clean up some of the issues that plague the governance structures across the group, address the operational aspects (or hotspots), and establish a succession plan that is enduring," IiAS said in a report.

Following the resignation, the report said Tata Group needs to address the issues that this conflict has raised. "In doing so, it must also find an appropriate strategy to calm the discord --going to the courts will be detrimental for both sides," it added.

Noting that the public disclosures made by both sides -- as explanations, rebuttals, and representations -– have been disconcerting for investors, IiAS said the disclosures have raised some legitimate questions on how the Tata group functions within its internal structures. Among others, the report said that Tata group must ensure that there would be a "balanced power structure at Tata Sons' board". The report also has a disclaimer saying that Tata group, through Tata Investment Corporation Ltd, holds equity in IiAS.



Comments

Disclaimer : We respect your thoughts and views! But we need to be judicious while moderating your comments. All the comments will be moderated by the newindianexpress.com editorial. Abstain from posting comments that are obscene, defamatory or inflammatory, and do not indulge in personal attacks. Try to avoid outside hyperlinks inside the comment. Help us delete comments that do not follow these guidelines.

The views expressed in comments published on newindianexpress.com are those of the comment writers alone. They do not represent the views or opinions of newindianexpress.com or its staff, nor do they represent the views or opinions of The New Indian Express Group, or any entity of, or affiliated with, The New Indian Express Group. newindianexpress.com reserves the right to take any or all comments down at any time.

IPL_2020
flipboard facebook twitter whatsapp