Tata Sons aims 'private limited', to shun public limited tag

Mumbai: Tata Sons, the holding company of all Tata Group companies, wants to change to a private limited company from a public limited one, according to a report in the Business Standard. For that, the $103 billion tea-to-chemicals conglomerate wants to amend memorandum of association and articles of association.

The company has circulated a notice among its shareholders seeking their approval for the exercise, and has also called its annual general meeting on September 21.  Any change in its corporate structure will require shareholders nod.

Tata Sons will be called Tata Sons Private Limited once the Tatas-run company changes its structure to a private entity. The BS report adds that change in Tata Sons’ corporate structure will require to be cleared by a special resolution, needing at least 75 per cent votes.

The news comes in the backdrop of a prolonged legal battle between Cyrus Mistry and Tata Group over former's unceremonious ouster as chairman on October 24 last year.

Mistry's family-run companies -- Cyrus Investments and Sterling Investment -- hold an 18.4 per cent stake in Tata Sons, second largest stake. Tata Trusts remains the largest shareholder with 66 per cent stake. The remaining shares are held mostly by the Tata family, some group companies and a few individuals, the report adds.

Report adds Mistry family has taken objection to the move that wants to convert Tata Sons into a private limited company.

A letter from Cyrus Investments to the Tata Sons board reads: “The proposal to convert Tata Sons from a public company to a private company constitutes yet another act of oppression of the minority shareholders of Tata Sons at the hands of the majority shareholders.”