Cyrus Mistry removed as director of Tata Industries
Cyrus Mistry has been removed as the director of Tata Industries, a Tata Sons spokesperson said on Monday, a move that will further escalate a boardroom battle that erupted after Mistry’s sacking as head of the $103-billion business empire.business Updated: Dec 12, 2016 22:27 IST
Cyrus Mistry has been removed as the director of Tata Industries, a Tata Sons spokesperson said on Monday.
The decision, which was taken at an extraordinary general meeting of shareholders, is likely to further escalate the boardroom battle that erupted after Mistry’s removal from the helm of the $103-billion business empire.
Mistry also ceased to be the chairman of the unlisted Tata Industries after shareholders voted him out. This move is likely to impact voting at an extraordinary general meeting (EGM) of software major and group jewel Tata Consultancy Services (TCS) on Tuesday.
Tata Sons called for the meetings to arrive at a resolution for replacing Mistry as the head of several group companies after he refused to step down after his unceremonious ouster in October. Ratan Tata, patriarch of the salt-to-software conglomerate, had then taken over as interim chairman while a company-appointed search panel was formed to find a replacement.
Ratan Tata later told shareholders that the continued presence of the ousted executive on various boards was a “disruptive influence” capable of making the companies “dysfunctional”. Mistry, for his part, accused the veteran industrialist of being insecure about his legacy.
Meanwhile, shareholders of TCS will vote on a resolution to remove Mistry as the company’s director in a crucial phase of the tussle between the two parties. The Mistry camp has lashed out at the move as a reflection of the “cloak and dagger” machinations that define “the angry strategy of the Ratan Tata camp”.
Tomorrow’s voting by TCS shareholders will be the first of six such EGMs called by several listed group companies – including Indian Hotels Co Ltd (December 20), Tata Steel (December 21), Tata Motors (December 22), Tata Chemicals (December 23) and Tata Power (December 26) – to seek Mistry’s ouster as their director.
In the case of Tata Motors, Tata Steel and Tata Chemicals, the shareholders will also vote for a resolution to remove Nusli Wadia as independent director.
First Published: Dec 12, 2016 12:03 IST