Wednesday 16 November 2016
TATA-MISTRY SPAT RAISES ISSUES OF CORPORATE GOVERNANCE
In contrast, Mistry’s reactions were both restrained and dignified. Other than what is being popularly called his “letter bomb” (it is not known for certain who leaked the contents) he has not made any public utterances. In fact, his office went out of its way to scotch rumours of potential legal action.
Returning to the root, none can deny the Board’s prerogative to sack or appoint a Chairman. The rest is surround sound. Mistry certainly knows this and it would be surprising if he chooses to pursue a protracted legal tussle that will be a drain on resources and time. He wanted to have his side of the story to be known and has more than achieved that objective through his letter that mysteriously found its way into the public domain. Notwithstanding their self-righteous fulminations, it has clearly put the Tatas on the back foot with a lot of explaining to do and simultaneously put the onus on the Government, tax and regulatory authorities to investigate the charges.
The real battle, however, lies in the Board Room. It should not be forgotten that at the end of the day Mistry represented the interests of Shapoorji-Pallonji who hold 18.6 per cent of Tata Sons’ shareholding. The Trusts, no matter how powerful they are, cannot steam roll over the interests of minority shareholders.
At one level it will test the corporate governance framework in the country, in which the role of independent directors will also come under a spotlight. The obligation of the board is not limited to just the promoters and shareholders, but also the larger universe of external stakeholders. It is for this unrepresented constituency the independent directors are expected to act as conscience keepers. But how far the average director is either inclined or equipped to discharge such responsibilities is a matter of debate.
Till the time of writing Mistry has not been dislodged from his position in the Tata flagship companies which were either affected by his decisions or might be impacted by the contingent liabilities that he has highlighted in his letter. Will the ordinary shareholders who had elected Mistry as the Chairman of their companies go along without a whimper if the respective Boards recommend his early separation? If the Tatas try to bulldoze their way through, it will be another travesty of corporate democracy.
It will be interesting to see if after all this corporate paper shredding, what kind of external talent the Tatas are able to attract to replace Mistry. Many are betting that they will have to settle for an “insider-outsider” like TCS’s N Chandrasekaran. If there is even a grain of truth in Mistry’s allegations, the task of his successor is already cut out. It will be a miracle if he/she is able to achieve the turnaround painlessly.
Meanwhile, the coming weeks will be a test of credibility between Cyrus Mistry and Ratan Tata. If one were to treat the initial stock market reaction as an ‘Opinion Poll’, the Tatas have reasons to worry.
In celebration of the marriage of Sadhvi firing, a death, four injured
Karnal : Haryana, Karnal cast an alleged nun firing into the wedding ceremony. A woman was killed in the firing. Four people are seriously injured. After the incident, the accused gunman escaped nun and all that Deva Thakur.
Accused of killing a nun and His play has come with private security. The wedding ceremony was held at the Palace of Karnal, Savitri. Telling herself monk reached into marriage with the girl 4 gunman.
The woman broke back in the hospital
Deva nun on the dance floor as soon pulled a pistol from his bag and fired twice at the DJ. Five people were injured in the firing. One woman later died in hospital. Police have registered a case of murder against all, and the Arms Act.
Deva who vestal
Laird, accused of murdering 26-year-Deva in his ashram runs Karnal and former Vice President of the Hindu Mahasabha said. There are many such pictures on social media Deva nuns with guns which he looks. That is fond of her gold jewelery and luxury trains.
if you want in hindi goto Hindi news
LIVE: Notbandi struggle in parliament, said the decision Anti Congress
New Delhi : The winter session of Parliament today is the first day in Parliament today and rocked all over Notbandi. Earlier, the PM said that the appeal must be accompanied by all the parties on issues of national interest.
LIVE UPDATES:
- Ram Gopal Yadav of Samajwadi Party Rajya Sabha on Notbandi hiring. A few days ago, was removed from the party, the Samajwadi Party's Ram Gopal.
- Goyal said the decision not harm honest people of Rs. He also said, "We never Notbandi not name a surgical strike, if you believe it is a good thing."
- Notbandi Speaking in the Rajya Sabha, Union Minister Piyush Goyal said today the country's government welcomed the move. For the first time in the country has been honest and dishonest is the loss of respect.
- Congress leader Anand Sharma said in the Rajya Sabha, the government's accountability to Parliament. Should check that the leaks were reported in April, how many people have bought gold over a million, foreign currency purchases. The list should be the front.
- Asked Anand Sharma in the Rajya Sabha , the Prime Minister said in his Ghazipur "My life is in danger, I'll kill '. Who wants to kill you? Tell country.
- RS Sharma said in his speech here, you Ghazipur from Goa said ... who looted the country ". You have disgraced former prime decade.
- Congress leader Anand Sharma said the government has a list of your Swiss bank. They are the people who tell you to land. How many know the name of the country you are garland. If you talk of money to the poor, to issue a list of all those. These are our demands.
- Congress leader Anand Sharma asked the government what the Constitution that you have the right people to get the money that you banned. You have brought economic chaos.
- Congress leader Anand Sharma said all the people of the country have made criminal. PM "The first benefit is to tell the terrorists." Now I do not understand what the argument is odd. The government is informing what terrorists sack filled bank? Which is what a bank is to fly the plane.
if you want in hindi goto Hindi news
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