A Shot, in the Arm, for Corp Governance

 A Shot, in the Arm, for Corp Governance

The jury is in. The National Company Law Tribunal(अधिकरण) (NCLT) has dismissed(खारिज कर दिया) Cyrus Mistry’s petition(याचिका/सिफ़ारिश) challenging(चुनौतीपूर्ण) his removal(निष्कासन/हटाया जाना) as Tata Sons chairman. It has also rejected the allegations(आरोपों/अभियोग) of misconduct(क़सूर/अवगुण) against(खिलाफ) chairman emeritus Ratan Tata and the company’s board. The NCLT bench has held that the company’s board was “competent(सक्षम/निपुण) ” to remove Mistry, as the board and its majority(अधिकांश/बहुमत ) shareholders had “lost(खो दिया) confidence(आत्मविश्वास) in him”.

This is the simple logic for shareholder democracy(लोक-तंत्र/संघ) . The Mistry camp is reportedly(कथित तौर पर) set to appeal the verdict(फैसले/विचार). However, it makes better, smarter sense to now seek(चाहते हैं।) closure. The Mistry family holds more than 18% stake(शेयर/हिस्सेदारी ) in Tata Sons, and as the single-largest shareholder, it can watch the bottom line and market capitalisation(पूंजीकरण) of the Tata Group companies significantly improve.

It is a fact that the market cap of Tata companies has risen considerably(काफी/पर्याप्त रूप में) since late October 2016, when Mistry was removed from his post — the former chairman being more of a manager than a visionary(दूरदर्शी/काल्पनिक) leader.

The asset-shedding(परिसंपत्ति बहा) and cost-cutting(लागत में कटौती) undertaken by Mistry did not add to the group’s brand equity(न्यायनीति/निष्पक्षता) . In any case, as leader of India’s largest and one its most respected business houses, Mistry, as the helmsman(कर्णधार) of Tata Sons, did not quite mark his presence(मौजूदगी/उपस्थिति) in the manner perhaps Ratan Tata had cherry-picked him for. Looking ahead, as India picks up economic speed, we need transparency when it comes to corporate governance(निगम से संबंधित शासन प्रणाली) and shareholder democracy in India Inc.

Coyness over clarity serves no purpose. The Tata Group has had a pioneering(अग्रणी/अनुसंधान ) role in raising the bar(प्रतिबंध हटाना) when it comes to corporate governance standards. Yet, its corporate structure(संरचना,), with two-thirds of Tata Sons’ shares held by trusts, still(अभी भी) seems(छाए हुए हैं) cloudy(बादल ) and opaque(अपारदर्शी). The latest decision could — and should — well spur much-needed reforms in transparency.

 

Important Vocabulary

1.Petition(याचिका/सिफ़ारिश)
Synonyms: application, prayer, request, suit, address

2.Misconduct(क़सूर/अवगुण)
Synonyms: dereliction, immorality, impropriety, malfeasance, malpractice
Antonyms: behavior, obedience, manners

3.Competent(सक्षम/निपुण)
Synonyms: adequate, capable, decent, efficient, proficient
Antonyms: impotent, incapable, incompetent, inept, insufficient

4.Majority(अधिकांश/बहुमत )
Synonyms: bulk, mass, max, more, preponderance
Antonyms: inferiority, adolescence, childhood, minority, secondary

5.Equity(न्यायनीति/निष्पक्षता) .
Synonyms: fairness, disinterestedness, fair-mindedness, honesty, integrity
Antonyms: dishonesty, bias, inequity, partiality, unfairness

6.Pioneering(अग्रणी/अनुसंधान )
Synonyms: begin, colonize, create, develop, discover, Antonyms: cease, complete, conclude, destroy, die

Print Friendly, PDF & Email