Conferment of power in ‘high command’ breach of trust: Mistry

TIL Desk/Business/New Delhi-Hitting out at Ratan Tata, ousted chairman of Tata Sons Cyrus Mistry on Thursday said conferment of all decision-making power in one man or a “high command” is unethical, improper and breach of trust. Mistry, in his representation to shareholders contesting his removal as the director of Tata Consultancy Services, said future of the Tata Group lies in how the trustees govern the Tata Trusts.

“Trustees are required to discharge their fiduciary duties by applying their minds to matters before them, questioning, testing, debating, checking and balancing. The conferment of all decision making power in one man or a high command among them is unethical, improper and a breach of trust,” he said.

He further said: “It is critical that serious decisions of severe magnitude and consequence are not taken whimsically, without much thought, or for unstated collateral objectives. It is necessary to have a strong method of checks and balances in the trustees’ decisions, particularly if decisions they take could indirectly give them personal benefits.”  He also alleged that Ratan Tata and former vice-chairman of Tata Sons N A Soonawala dictated the trustee-nominated directors as to how Tata Sons should conduct itself.