Mumbai: Cyrus Mistry is facing opposition to his continuing as chairman/director on Tata companies from yet another source, namely the Institutional Investor Advisory Services India Limited (IiAS) which is a proxy advisory firm.
It has asked shareholders of Tata Consultancy Services to vote at the forthcoming extraordinary general meeting for the resolution calling for the removal of Mr Mistry as a director of TCS.
It however maintains that statements from both Cyrus Mistry and Tata Sons “do not provide any meaningful information, thus making it impossible to decide whether the group’s decision was well-founded.”
IiAS said it decision was predicated on the need for Tata companies to operate with minimum disruption; by maintaining the existing chain of command between Tata Sons, the largest shareholder and TCS, the operating company. Further, it said Mr Mistry was a director because of his position as chairman of Tata Sons.
Since he has been removed from the chairmanship of Tata Sons his continuing on TCS board as a non-independent director becomes untenable. TCS, in which Tata Sons holds 73.26 per cent, is the first Tata company to hold an EGM for the removal of Mr Mistry as director.
IiAS has however clarified that their recommendation is not an endorsement of Mr Mistry’s removal from the chairmanship of Tata Sons.
