Cyrus Mistry

Cyrus Pallonji Mistry (born 4 July 1968) is an Irish businessman of Indian origin . He was the chairman of Tata Group, an Indian business conglomerate, from 2012 to 2016.[2][3] He was the sixth chairman of the group, and only the second (after Nowroji Saklatwala) to not bear the surname Tata.[4] In mid-2012, he was chosen by a selection panel to head the Tata Group and took charge in December the same year. In October 2016, the board of Tata Group's holding company, Tata Sons, voted to remove Mistry from the post of chairman after offering him an opportunity to resign voluntarily.[5] Former chairman Ratan Tata then returned as interim chairman, and Natarajan Chandrasekaran was named as the new chair a few months later.[6] However, in December 2019, the National Company Law Appellate Tribunal (NCLAT) declared the appointment of Chandrasekaran as executive chairman illegal, and restored Mistry. However, the Supreme Court stayed NCLAT's order on 10 January 2020.[7] Mistry has filed a cross appeal in the court, seeking explanations for anomalies in the NCLAT.[8]

For the Indian writer, see Cyrus Mistry (writer).

Cyrus Mistry
Cyrus Mistry with Rakeshwar Pandey
Born
Cyrus Pallonji Mistry

(1968-07-04) 4 July 1968
Bombay, Maharashtra, India
CitizenshipIreland[1]
Alma materImperial College London, University of London
London Business School
OccupationBusinessman
Parent(s)Pallonji Mistry (father)
RelativesNoel Tata (brother-in-law)

He owns an 18.4% stake in Tata Sons, through his company, Cyrus Investments Pvt. Ltd.[9] In 2018, his net worth was approximately $10 billion.[10] He was a member of the National Integration Council.

Early life

Mistry was born to a Parsi family in Bombay (now Mumbai), the younger son of Indian billionaire and construction magnate Pallonji Mistry by his wife Patsy Perin Dubash.[11][12] Both his parents belong to the Zoroastrian faith and have roots in India. However, Mistry's mother was born in Ireland, and his father chose to take up Irish citizenship. Mistry has an elder brother, Shapoor Mistry, who is also an Irish citizen, and is married to Behroze Sethna, the daughter of Parsi lawyer Rusi Sethna. Mistry also has two sisters, Laila and Aloo. Laila is married to Rustom Jehangir, a London-based portfolio fund manager.[13][14][15] Aloo is married to Noel Tata, the half-Parsi, half-Catholic half-brother of Ratan Tata.

The Pallonji family have been active in business for over a century, and it was in the 1930s that Mistry's grandfather, Shapoorji Mistry, first acquired a stake in Tata Sons. The stake, which now stands at 18.5%, is presently held by Mistry's father, and comprises the largest block of shares held by a single party;[4] some 66% stake in Tata Sons is controlled by charitable trusts set up by the family. Mistry grew up in affluent circumstances. He studied at the prestigious Cathedral & John Connon School in South Mumbai.[16]

He studied at Imperial College London and was awarded Bachelor of Engineering in civil engineering from University of London in 1990. He later studfied at London Business School was awarded International Executive Masters in management from University of London in 1996.[13][14]

Career

Mistry joined the family construction company, Shapoorji Pallonji & Co. Ltd as a director in 1991.[17] Mistry has been managing director of Shapoorji Pallonji & Company, which is part of the Shapoorji Pallonji Group, and also chairman of Tata Sons and of the Tata Group.

In a 2013 article, The Economist categorized him as "the most important industrialist in both India and Britain."[18]

Tata Sons

Mistry joined the board of Tata Sons on 1 September 2006, a year after his father retired from it.[1] He served as a Director of Tata Elxsi Limited, from 24 September 1990 to 26 October 2009 and was a Director of Tata Power Co. Ltd until 18 September 2006.[19]

In 2013, Mistry was appointed as the chairman of Tata Sons. In addition, he was also chairman of all major Tata companies including Tata Industries, Tata Steel, Tata Motors, Tata Consultancy Services, Tata Power, Tata Teleservices, Indian Hotels, Tata Global Beverages and Tata Chemicals.

The Tata Sons Board voted to remove Mistry from the Chairmanship of Tata Sons on 24 October 2016.[20][21][22]

2018 NCLT verdict

In July 2018, the National Company Law Tribunal (NCLT), which "adjudicates issues relating to Indian companies,"[23] issued a verdict in favor of Tata Sons on charges of mismanagement leveled by Mistry in 2016, two months following his ousting as chairman, through a vote of non-confidence.[24] On 10 July, Mistry stated that he would appeal the decision.[25]

2019 NCLAT verdict

In December 2019, the National Company Law Appellate Tribunal reinstated Mistry as the Chairperson for Tata Sons for his remaining term, and declared that the appointment of TCS CEO Natarajan Chandrasekaran as executive chairman of Tata Sons was illegal.[26] In January 2020, Tata Sons appealed the Supreme Court against NCLAT's decision.[27] Cyrus Mistry announced that he will not return to the Chairmanship of the conglomerate, but is interested in reserving his seat in the company's board.[28] A three-judge bench comprising Chief Justice SA Bobde and Justices BR Gavai and Surya Kant stayed NCLAT's order while hearing Tata Sons' appeal on 10 January 2020.

The bench stated, "We find there are lacunae in the judicial orders passed by the NCLAT."[29]

The Supreme Court also ordered that Tata Sons will not exercise power under Article 25 of the Company Law for pushing out shares of minority holders in the company.[30]

Personal life

Mistry is married to Rohiqa Chagla, the daughter of lawyer Iqbal Chagla and granddaughter of jurist M.C. Chagla. Iqbal Chagla has strategized the course of action for Cyrus Mistry in the legal battle against Tata Sons.[31]

The couple have two sons, Firoz Mistry and Zahan Mistry.[1]

Mistry is an Irish citizen and a permanent resident of India (having acquired Overseas Citizenship of India). According to a news report in an Irish newspaper, The Independent, Mistry views himself as a global citizen.[11]

References
  1. Zachariah, Reeba; Singh, Namrata (24 November 2011). "Cyrus Mistry: Avid golfer and foodie, avoids cocktail circuit". The Times of India. Retrieved 24 February 2012.
  2. "Cyrus P Mistry to take over from Ratan Tata as Chairman of Tata Group in December 2012". The Economic Times. 23 November 2011. Retrieved 24 November 2011.
  3. "Cyrus Mistry takes over the position of chairman for Tata Sons in December 2012". 26 November 2011.
  4. "Cyrus Mistry, a Tata in all but name". CNBC-TV18. Reuters. 23 November 2011. Retrieved 24 November 2011.
  5. "How Ratan Tata's blue-eyed boy Cyrus Mistry turned his rival". businesstoday.in. Retrieved 21 February 2020.
  6. "N Chandrasekaran, CEO and MD of Tata Consultancy Services, is new Chairman of Tata Sons". The Times of India. Retrieved 17 January 2017.
  7. Rautray, Samanwaya (11 January 2020). "Tata vs Mistry: Supreme Court stays NCLAT order favouring Cyrus Mistry". The Economic Times. Retrieved 22 January 2020.
  8. "Tata-Mistry Case: Cyrus Mistry Files Appeal In Supreme Court Seeking More Relief From NCLAT". BloombergQuint. Retrieved 21 February 2020.
  9. "Cyrus Investments seeks representation on Tata Sons board". Live Mint. 1 November 2018. Retrieved 1 November 2018.
  10. Pinto, Viveat Susan (26 September 2018). "Cyrus, Shapoor Mistry debut in rich list; Mukesh Ambani retains top spot". Business Standard India. Retrieved 1 June 2019.
  11. "www.independent.ie/business/world/cyrus-mistry-and-the-mammy-factor-at-the-heart-of-tata-30728963.html". Retrieved 15 June 2015.
  12. Munroe, Tony (23 November 2011). "Global search for Tata chairman ends close to home". Reuters. Retrieved 24 November 2011.
  13. Agarwal, Vibhuti (23 November 2011). "Who is Cyrus Mistry?". The Wall Street Journal. Retrieved 24 November 2011.
  14. "Who is Cyrus Mistry?". IBN Live. 23 November 2011. Retrieved 24 November 2011.
  15. "Who is Cyrus Mistry?". NDTV. 23 November 2011. Retrieved 24 November 2011.
  16. "Cyrus P Mistry: Tata Sons' deputy chairman a reticent man with strategic vision, humility". The Economic Times. 24 November 2011. Retrieved 24 November 2011.
  17. "The Other Mistry". Retrieved 2 April 2020.
  18. The Economist "Britain and India: The Odd Couple", The Economist, 28 September 2013. Retrieved 12 March 2018.
  19. "Cyrus Mistry, the Richest Irishman's Son Who Became First Non-Tata to Head Ratan Tata's Empire". News18. Retrieved 26 February 2020.
  20. "Tata Sons Board replaces Mr. Cyrus P. Mistry as Chairman, Selection Committee set up for new Chairman". 24 October 2016. Archived from the original on 24 October 2016. Retrieved 24 October 2016.
  21. "Ratan Tata to replace Cyrus Mistry as Tata Sons chairman – The Economic Times". The Economic Times. Retrieved 24 October 2016.
  22. Ninan, Oommen a (4 June 2017). "Conflict of interest led to Cyrus Mistry removal: Ratan Tata". The Hindu. ISSN 0971-751X. Retrieved 18 November 2017.
  23. "National Company Law Tribunal constituted – new perspectives for dispute resolution". Khaitan & Co. Retrieved 13 June 2016.
  24. "Ratan Tata welcomes NCLT verdict". The Economic Times. 9 July 2018. Retrieved 12 June 2018.
  25. "Tata welcomes NCLT verdict but Cyrus Mistry says he will challenge ruling". The Economic Times. 9 July 2018. Retrieved 12 June 2018.
  26. Chitravanshi, Dev Chatterjee & Ruchika (18 December 2019). "Tata vs Mistry: NCLAT restores Cyrus Mistry as chairman of Tata Sons". Business Standard India. Retrieved 6 January 2020.
  27. "Tata Sons moves SC challenging NCLAT decision restoring Cyrus Mistry as executive chairman". The Economic Times. 3 January 2020. Retrieved 6 January 2020.
  28. Upadhyay, Jayshree P. (5 January 2020). "Cyrus Mistry shuns top posts at Tata companies, seeks board seat". Livemint. Retrieved 6 January 2020.
  29. "Supreme Court stays NCLAT order restoring Cyrus Mistry as executive chairman of Tata Group – Times of India ►". The Times of India. Retrieved 22 January 2020.
  30. "Setback for Cyrus Mistry: Supreme Court stays NCLAT order restoring Pallonji Group scion as executive chairman of Tata Group". Firstpost. Retrieved 22 January 2020.
  31. "When the country's best legal minds came together to celebrate Riyaz Chagla's Bombay HC appointment". The Economic Times. 6 July 2017. Retrieved 6 January 2020.
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