Cyrus Mistry’s conduct has caused enormous harm to Tata Group: TCS
Ousted Tata Group chairman Cyrus Mistry had caused enormous harm through unsubstantiated allegations that has affected not just Tata Sons, but also the group, Tata Consultancy Services (TCS) said on Monday, giving reasons for its call to oust Mistry as director of the company.business Updated: Nov 22, 2016 07:25 IST
Ousted Tata Group chairman Cyrus Mistry had caused enormous harm through unsubstantiated allegations that has affected not just Tata Sons, but also the group, Tata Consultancy Services (TCS) said on Monday, giving reasons for its call to oust Mistry as director of the company.
The software major on Monday issued a statement to stock exchanges giving the special notice for an extraordinary general meeting (EGM) of shareholders that will be convened on December 13, in Mumbai, to vote on the single-point resolution of removing Mistry as director from TCS.
In a separate statement, another group company, Indian Hotels, also said it has called a shareholder meeting on December 20 to remove Mistry as director from the company’s board.
Under the Companies Law, a director can only be removed by shareholders of a company. Ishaat Hussain recently replaced Mistry as the chairman of TCS. Hussain was nominated by the company’s board. Mistry was earlier removed as Tata Sons chairman on October 24.
Mistry and Tata Sons have been embroiled in a dispute ever since his ouster as chairman, with both sides trading charges and counter charges. The dispute has split the boards of the operating companies of the group, with independent directors of at least two companies publicly issuing statements of support for Mistry’s leadership.
Detailing the reasons for the EGM, the TCS notice said: “Subsequent to his replacement as executive chairman of Tata Sons, Mr Mistry has made certain unsubstantiated allegations which cast aspersions not only on Tata Sons and its board of directors but also on the Tata Group as a whole, of which TCS is an integral part. Mr Mistry’s conduct has caused enormous harm to the Tata Group, TCS and its stakeholders, including employees and shareholders.”
“The board of directors of Tata Sons, the holding company of the Tata Group, has “lost confidence in Cyrus P Mistry to lead Tata Sons for a combination of several factors,” it said, adding, Tata Sons’ decision to replace him as the removal “was absolutely necessary for the future success of the Tata Group”.