Institutional EYE

Commentary on Corporate Governance Issues

Tata Group: Reading the shareholder vote

Six resolutions were put to vote in four recent Tata group company meetings. Analysing the outcome data in the aggregate and by splicing it by resolution and by type of investor holds important learnings for the market. Four listed companies in the Tata group have recently held their extra-ordinary general meetings.1 These are Tata Consultancy Services Limited (meeting date 13 December 2016), Tata Steel Limited (21 December 2016), Tata Motors Limited (22 December 2016) and Tata Chemicals Limited (23 December 2016). Six resolutions were put to vote in these meetings: one resolution was for the removal of Cyrus Mistry, three for the removal of Nusli Wadia and two for the appointment of directo

Tata Group: Time to reboot

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. Following Cyrus Mistry’s resignation from the remaining six listed Tata Group companies, the 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. The public disclosures made by both sides – as explanations, rebuttals, and representations – have been disconc

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