Tata vs Mistry (A): Struggle for Succession and Governance

* Required Fields

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

My Cart

You have no items
in your shopping cart.