Why was Cyrus Mistry removed as Tata chairman?

Cyrus Mistry became the Tata Sons chairman in 2012, succeeding Ratan Tata. But he was removed four years later in a boardroom coup led by Tata Trusts, which owned 66% of Tata Sons and was controlled by Ratan Tata.

The dispute snowballed with allegations of mismanagement and suppression of minority shareholder rights. Four years later, an epic and sudden decision made by Tata himself and the board of directors shook the entire company after Mistry was removed as the Chairperson of Tata Sons.

In July 2018, the National Company Law Tribunal (NCLT) which adjudicates issues relating to Indian companies, issued a verdict in favour of Tata Son on charges of mismanagement levelled by Mistry in 2016, two months following his ousting as chairman, through a vote of no confidence.

The Supreme Court of India 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.