Mumbai: Refuting Cyrus Mistry's allegations of "breakdown" in the governance of trusts managing Tata Sons, the group holding firm on Monday said the trusts are governed by individual wills of Jamsetji Tata and his two sons, and accused the ousted Chairman of causing huge financial losses.
Tata Sons, the holding firm for over $100 billion conglomerate, said Mistry's statements have caused the group, including the companies where he continues to be the Chairman, "enormous damage and caused considerable financial loss to all shareholders, running into tens of thousands of crores".
"The Trusts are governed by the individual Wills of Jamsetji Tata, his two sons, Sir Dorabji Tata and Sir Ratan Tata, and other founders. The Trusts have been scrupulously following the mandates set out in the Wills," Tata Sons said in a statement.
That is the reason the different Trusts continue in existence for decades, it added.
Various Tata Trusts of which Ratan Tata is lifetime chairman, owns 66 per cent in Tata Sons, and are all public trusts.
Earlier, stepping up his fight against Tatas and patriarch Ratan Tata, Mistry sought government's intervention to "remedy and repair breakdown" in the governance of trusts managing Tata Sons.
Reaching out to shareholders of six Tata group firms, where promoters have called EGMs to remove him from their boards, Mistry said, "The Tata Group is no one's personal fiefdom: it does not belong to any individual, not to the trustees of Tata Trusts, not to the Tata Sons directors, and not to the directors of the operating companies.
Refuting the claim, Tata Sons said: "After he became the Chairman of Tata Sons, it is Mr. Mistry who converted the Group into his "personal fiefdom", with his unilateral actions destroying precious institutional memory of the House of Tata."
Mistry has chosen to fight his removal in the media even at the cost of hurting and damaging the Tata group, including Tata companies, even while remaining as its Chairman, Tata Sons said.
"His statements have caused the group (including the companies where he continues to be the Chairman) enormous damage and caused considerable financial loss to all shareholders, running into tens of thousands of crores," it added.
Tata companies and Tata Sons have, for many decades, worked cohesively and seamlessly for the benefit of all stakeholders namely the companies, their shareholders and employees and for society at large, it said.
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