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Tata Motors board evades Mistry feud by backing ‘management’

by Katherine Blackler on November 15, 2016

Independent directors indirectly support chairman, while parent company Tata Sons attempts to remove Mistry from all leadership positions.

Tata Steelworks, Scunthorpe, UK. Photo: Shutterstock

Directors of Tata Motors appear to have given chairman Cyrus Mistry a vote of confidence, in a move that hit efforts by the Tata group to remove him from all leadership positions at the Indian conglomerate’s operating companies.

Tata Steel and Tata Motors called shareholder meetings last week to vote on the dismissal of Mistry.

Tata Sons ousted Mistry as group chairman last month, but Tata Motors opted not to follow suit, as it released results that fell short of analysts’ expectations.

Although a statement by Tata Motors did not mention Mistry by name, it said that the “management of the company and its subsidiaries have the full confidence and support of the independent directors”.

There are six independent non-executive directors on Tata Motors’ board, plus five others, including Mistry.

Tata Motors reported a sharp fall in profit for the first half of 2016–17, as losses at its Indian car business offset rising earnings at Jaguar Land Rover.

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