Ratan Tata Or Cyrus Mistry: Tata Steel Shareholders' Dilemma
In October 2016, the board of Tata Sons, a company in the Tata Group, India's largest business group, decided to remove Cyrus Mistry from the chairmanship of its board. Subsequently, Tata Sons appealed to the shareholders of the other Tata Group companies, including Tata Steel Limited, to also remove Mistry from their boards. The shareholders of Tata Steel were informed that an extraordinary general meeting had been called to vote on two resolutions that would decide whether Mistry and another independent board member should continue as directors of Tata Steel or be removed from their positions. How could the shareholders make a thoughtful and forward-thinking decision on the two resolutions? Pitabas Mohanty is affiliated with XLRI-Xavier School of Management. Supriti Mishra is affiliated with International Management Institute-Bhubaneswar.