Cyrus Mistry, who was ousted as chairman of Tata Sons earlier, was removed as a director of Tata Industries following an Extraordinary General Meeting (EGM) held on Monday. Tata Industries also said that Mistry is no more its chairman now.
Both Ratan Tata and Mistry will face a key test on Tuesday in yet another EGM of its crown jewel Tata Consultancy Services (TCS) which will also seek the ouster of Mistry as a director of the company. The move comes at a time when boardroom battle has erupted after Mistry’s sacking as head of the $103-billion salt-to-software conglomerate.
“Mistry also ceases to be the chairman of the company following his removal as the director. Tata Industries, at its EGM on December 12, 2016, removed Cyrus P Mistry, as a director of the company. Hence, he also has ceased to be the chairman of the company,” said Tata Industries.
Besides, six other Tata companies — Tata Consultancy Services, Indian Hotels, Tata Motors, Tata Chemicals, Tata Power and TataSteel — have called EGMs. last week, Tata Group interim Chairman Ratan Tata wrote to shareholders, asking their support in removing Mistry as chairman.
Among the top six firms, its crown jewel Tata Consultancy Services (TCS), with its EGM slated for December 13, will also seek the ouster of Mistry as a director. Shareholders of TCS will on Tuesday vote on a resolution to remove Mistry as the company’s director -- a crucial test for both Ratan Tata and the ousted Tata Sons Chairman in their ongoing board room battle.
On November 17, the TCS board decided to call EGM pursuant to the Special Notice & Requisition dated November 9, 2016 sent by Tata Sons, shareholder of the company holding 73.26 per cent of the paid-up equity share capital of the company. Tata Sons, however, seeks to pass a shareholder resolution for removal of Mistry as director after removing him as Chairman on November 10, replacing him with Ishaat Hussain.
Mistry was abruptly ousted as chairman of Tata Sons -- the holding company of the $103 billion business empire - on October 24. Since then, interim Chairman Ratan Tata has moved to consolidate his position by seeking to remove Mistry from boards of key listed firms.
Now, the board of Tata Industries, post the EGM, comprises, KRS Jamwal, R Bhinge, Ireena Vittal, Ashish Dhawan, N Srinath, and F N Subedar. Tata Industries is a subsidiary of Tata Sons. Several Tata companies, including Tata Motors, Tata Power, Tata Steel, hold equity in the company. Tata Industries’ main activities are to promote Tatas’ entry into new businesses and invest in operating companies to facilitate growth.