Abstract
This case highlights the loopholes in succession planning and issues of corporate governance at the multinational conglomerate Tata Group headquartered in Mumbai, India. This is a three-part case which highlights the dramatic removal of Cyrus Mistry from the chairmanship of Tata Group. The case is based on excerpts from the book: Gupta, Deepali (2019). Tata vs Mistry: The Battle for India’s Greatest Business Empire. New Delhi: Juggernaut. In a Tata Sons board meeting in October 2016, directors introduced an unmentioned motion in the agenda requesting Mistry to step down as Chairman because the board had lost confidence in Mistry. RNT in an honorary role was present in the room. Mistry called the motion illegal. Then the board passed a series of related new motions removing retirement criteria and reinstating RNT as chairman. In December 2016, Mistry resigned from the Boards of Tata’s operating companies and took his grievance to the National Company Law Tribunal (NCLT) under regulations for mismanagement to the detriment of minority shareholders.
Additional Information
| Product Type | Case |
|---|---|
| Reference No. | OB0246(A) |
| Title | Tata vs Mistry (A): Struggle for Succession and Governance |
| Pages | 23 |
| Published on | Mar 29, 2023 |
| Year of Event | 2016 |
| Authors | Gupta, Vishal; Gupta, Deepali; |
| Area | Organizational Behaviour (OB) |
| Discipline | Ethics and Governance, Human Resource Management, Organizational Behaviour, Strategic Management |
| Sector | Telecom and Software |
| Learning Objective | Identify the ethical dilemmas faced by a leader as well as the organisation. Recognize the importance of succession planning and talent management in large corporations. Consider the outcomes of an unsuccessful succession planning process; understand additional negative side effects that stem from CEO succession processes, such as undue influence, the effect on brand image and shareholder value. Consider the leadership development processes and organizational change strategies that underlie executive transitions. |
| Keywords | Leadership; Ethics; Corporate Governance; Succession Planning |
| Country | India |
| State | Maharashtra |
| City | Mumbai |
| Access | For All |
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