Tata Sons: Shareholders voted to remove ex-chairman Cyrus Mistry from board
Tata Sons said on Monday its shareholders have voted to remove former Chairman Cyrus Mistry as a director from its board.business Updated: Feb 06, 2017 17:28 IST
Tata Sons said on Monday its shareholders have voted to remove former chairman Cyrus Mistry as a director from its board.
“The shareholders of Tata Sons Ltd, at the extraordinary general meeting held today, passed, with the requisite majority, a resolution to remove Cyrus P Mistry as a Director of Tata Sons Ltd,” the Tata Group’s holding firm said in a statement.
Tata Sons, the holding company of the $100 billion salt-to-software Tata conglomerate, had called for an extraordinary general meeting (EGM) last month to remove Mistry from its board.
However, Mistry had legally challenged the move.
Last week, the National Company Law Appellate Tribunal (NCLAT) had dismissed petitions by two investment firms, backed by Mistry family, against holding the EGM.
Mistry camp had moved the NCLAT after the Mumbai bench of National Company Law Tribunal (NCLT) had on January 31 refused to grant any relief.
Tata Sons had abruptly removed Mistry as its Chairman on October 24 last year and sought his ouster from operating companies like Tata Motors and TCS. Mistry subsequently resigned from the board of six companies but dragged Tata Sons and his interim successor Ratan Tata to the NCLT.
After the board meeting of October 24, 2016, Tata Sons had resolved that Mistry shall, notwithstanding his ceasing to be the Chairman, continue as a director of the company.
But his conduct thereafter in levelling “unsubstantiated” allegations and causing “enormous harm” to Tata Group had made his continuation as a Director of Tata Sons “untenable” and therefore, he should be removed, Tata Sons had said in a notice seeking Extraordinary General Meeting on February 6.
Mistry’s family owns an 18.4% stake in Tata Sons, but a majority interest is controlled by a series of Trusts chaired by Tata family patriarch Ratan Tata.