Cyrus Mistry betrayed trust, wanted to take control of main firms: Tata Sons
Weeks after ousting him as Chairman of Tata Sons, Mistry has been replaced with board member Ishaat Hussain.
Mumbai
: Slamming Cyrus Mistry after replacing him as the chairman of Tata Consultancy Services (TCS), Tata Sons on Thursday said that the sacked chairman had betrayed the conglomerate’s trust.
In a press release, Tata Sons alleged that Mistry had the desire to seek control of the main operating firms of Tata Group, and excluded other representatives.
In a scathing attack, Tata Sons claimed that under Mistry, the Group's over 100-yr-old structure was consciously dismantled, and firms drifted away from promoters and shareholders.
Weeks after ousting him as Chairman of Tata Sons, Mistry has been replaced as the head of TCS, the crown jewel in the Tata conglomerate portfolio, with Ishaat Hussain as interim chair.
Tata Sons, which holds a 73.26 per cent stake in TCS, has called an extraordinary general meeting of shareholders -"to consider a resolution for the removal of Cyrus P Mistry as
Director of the Company,-" the software firm said in a regulatory filing.
Besides, a similar shareholder meeting of Indian Hotels Company Ltd, where Tata Sons holds 28.01 per cent, has been called to seek removal of Mistry as director of the company.
TCS said it has has received a letter dated November 9, 2016 from Tata Sons Ltd nominating Hussain as the Chairman of the Board of Directors of the company in place of Mistry with immediate effect.
-"In view of this, Mistry has ceased to be the Chairman of the Board of Directors of the company and Hussain is the new chairman of the company,-" TCS said.
Hussain, a director of several Tata companies, including Tata Steel and air conditioning and engineering arm Voltas Ltd, will remain TCS chairman until a permanent new replacement is done.
He currently serves as chairman of Voltas and satellite television provider Tata Sky.
-"Tata Sons has issued a special notice under Section 169 read with Section 115 of the Companies Act, 2013 and a requisition for convening an extraordinary general meeting of shareholders of the company under Section 100(2) of the
Companies Act, 2013 to consider a resolution for the removal of Cyrus P Mistry as Director of the Company,-" TCS added.
While the ouster of Mistry triggered a public spat between him and Tata Sons, his family continues to controls an 18.41 percent stake in Tata Sons. Mistry, who was replaced by his predecessor Ratan Tata as interim Chairman of Tata Sons, continues to be the chair of some of the key listed group companies. These include Indian Hotels, Tata Motors and Tata Steel.
-"... a requisition is received from Tata Sons, a shareholder of Indian Hotels Company Ltd, holding 28.01 per cent of the paid-up equity share capital of the company to convene an extra-ordinary general meeting of the shareholders of the company... to pass the resolution for removal of C P Mistry as Director of the company,-" the hospitality major said in a BSE filing.
Last week, IHCL had in a regulatory filing stated that independent directors had unanimously backed Mistry and supported his continuance as chairman of the company.
