Cyrus Mistry redesignated Tata Sons MD

19 Apr,2012

By Satish John

 

In a quiet move, the board of Tata Sons has re-designated Cyrus Pallonji Mistry as the managing director of Tata Sons. The new designation became effective from April 1, 2012.

 

On November 23, 2011, Tata Sons named Mr Mistry the successor to Ratan Tata, the current non-executive chairman of Tata Sons. Tata will retire by the end of 2012, when he becomes 75 on December 28.

 

Mr Mistry is currently learning the ropes directly under Ratan Tata, shadowing the chairman as he prepares Mr Mistry to take on the mantle for bigger responsibilities within the Tata group.

 

Mr Mistry’s induction is closely tracked within and outside Bombay House, the Tata headquarters. In recent times, he has met chief ministers of states such as Jharkhand and Gujarat, Union ministers and also been introduced to senior business captains of industry associations.

 

Interestingly, when Ratan Tata took over from JRD Tata, he was appointed the executive chairman. Following the group’s policy, Mr Tata shed the executive role when he attained 65 years of age, but retained the post of non-executive chairman of Tata Sons and flagship group companies.

 

In recent years, the Tata Sons board has seen senior board members shed their executive roles, even as they retained their role as a non-executive board member. The senior members include R Gopalakrishnan, Arun Gandhi and R Krishna Kumar.

 

Legal circles say it is logical to appoint Mr Mistry as the managing director of Tata Sons. As a deputy chairman, Mr Mistry wouldn’t have the direct management role in managing the day-to-day affairs of the company. “Appointing him as the managing director gives him the legal authority and responsibility,” to manage the day-to-day affairs of the holding firm.

 

Source: The Economic Times
Copyright © 2012, Bennett, Coleman & Co. Ltd. All Rights Reserved

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