Mistry’s return as Tata chairman may face tough SC test

TIL Desk/Business/New Delhi/ Although the National Company Law Appellate Tribunal (NCLAT), in an unexpected turn of events, ordered the reinstatement of Cyrus Mistry as Tata Sons’ Executive Chairman, several experts, however, differ on the order and some are of the view that the order may not hold ground in the Supreme Court.

Corporate and legal experts feel that as both the removal of Mistry as the Chairman and appointment of N. Chandrasekaran had the approval of the board and more importantly that of shareholders, the decisions should not be considered illegal.

“The Chairman of the board is appointed and removed by the board itself. And then it is ratified by the shareholders meeting also. Shareholders are supreme,” Pavan Kumar Vijay, Founder of Corporate Professionals, said. “The order may have been given on some procedural aspect, but I don’t think it will sustain (if Tata Sons moves Supreme Court),” Vijay told.