In the extraordinary general meeting (EGM) held on February 6, 2017 at Bombay House in Mumbai, the 11-member board of Tata Sons Limited passed with requisite majority the resolution to oust Cyrus P. Mistry as Director in Tata Sons. This was the final separation of any official connection between Cyrus Mistry and Tata Group companies.
He now remains a mere shareholder in Tata Sons, where his family owns 18.4% share. Tata Trusts hold around 66% stake, while Tata Group companies hold 13%. Ratan Tata holds 0.83%, Noel Tata 0.51%, Jimmy Tata 0.81% and Simone Tata 0.50%.
But the battle is still not over.
Cyrus Mistry had earlier approached National Company Law Tribunal (NCLT) seeking a stay on Tata Sons’ call for an EGM to remove him as Director. On January 31, NCLT refused to stay the EGM.
Cyrus Mistry’s two investment companies then approached National Company Law Appellate Tribunal (NCLAT), which too refused to stay the EGM. NCLT will now hear the petition on February 13-14. The earlier petition was to stay the EGM but since the EGM has already taken place and he has been removed, the petition will now be revised to challenge his removal on grounds of mismanagement and suppression of shareholder’s right.
In case Cyrus Mistry fails to successfully argue his case challenging his ouster, the case will be dismissed. It will mean curtains for Mistry as far as any official involvement in Tata Sons Limited is concerned and will finally bring to close the unsavoury public spat between him and Ratan Tata, that has dented the overall image of the Tata Group.
The EGM was closely followed by all stakeholders, media and the public. The spotlight was also on Noel Tata, Ratan Tata’s step-brother. In the ongoing spat between Ratan and Cyrus Mistry, Noel Tata has had to walk a tightrope and has, therefore, not taken any public position on this.
Noel is married to Cyrus Mistry’s sister and this had put him in an awkward position whether to vote in favour or against Mistry. Many felt that Noel may abstain from voting as his vote would have no consequence on the overall outcome, since Tata Trusts along with other Tata Group companies control over 80% shares in Tata Sons Limited.
Noel and his mother Simone, Ratan Tata’s step mother and ex-wife of Naval Tata, both abstained from attending the meeting but voted through their proxies. With Ratan Tata likely to step down on February 20 from the board, it is likely that Noel Tata may be inducted as Director in his place.
Noel Tata runs Tata Trent and Tata International and has cordial relations with both Ratan Tata and Cyrus Mistry.
In the extraordinary general meeting (EGM) held on February 6, 2017 at Bombay House in Mumbai, the 11-member board of Tata Sons Limited passed with requisite majority the resolution to oust Cyrus P. Mistry as Director in Tata Sons. This was the final separation of any official connection between Cyrus Mistry and Tata Group companies.
He now remains a mere shareholder in Tata Sons, where his family owns 18.4% share. Tata Trusts hold around 66% stake, while Tata Group companies hold 13%. Ratan Tata holds 0.83%, Noel Tata 0.51%, Jimmy Tata 0.81% and Simone Tata 0.50%.
But the battle is still not over.
Cyrus Mistry had earlier approached National Company Law Tribunal (NCLT) seeking a stay on Tata Sons’ call for an EGM to remove him as Director. On January 31, NCLT refused to stay the EGM.
Cyrus Mistry’s two investment companies then approached National Company Law Appellate Tribunal (NCLAT), which too refused to stay the EGM. NCLT will now hear the petition on February 13-14. The earlier petition was to stay the EGM but since the EGM has already taken place and he has been removed, the petition will now be revised to challenge his removal on grounds of mismanagement and suppression of shareholder’s right.
In case Cyrus Mistry fails to successfully argue his case challenging his ouster, the case will be dismissed. It will mean curtains for Mistry as far as any official involvement in Tata Sons Limited is concerned and will finally bring to close the unsavoury public spat between him and Ratan Tata, that has dented the overall image of the Tata Group.
The EGM was closely followed by all stakeholders, media and the public. The spotlight was also on Noel Tata, Ratan Tata’s step-brother. In the ongoing spat between Ratan and Cyrus Mistry, Noel Tata has had to walk a tightrope and has, therefore, not taken any public position on this.
Noel is married to Cyrus Mistry’s sister and this had put him in an awkward position whether to vote in favour or against Mistry. Many felt that Noel may abstain from voting as his vote would have no consequence on the overall outcome, since Tata Trusts along with other Tata Group companies control over 80% shares in Tata Sons Limited.
Noel and his mother Simone, Ratan Tata’s step mother and ex-wife of Naval Tata, both abstained from attending the meeting but voted through their proxies. With Ratan Tata likely to step down on February 20 from the board, it is likely that Noel Tata may be inducted as Director in his place.
Noel Tata runs Tata Trent and Tata International and has cordial relations with both Ratan Tata and Cyrus Mistry.
