Mumbai, Feb 6: Cyrus Mistry, the expelled chairman of Tata Sons, was removed as director of the group on Monday. At the Extraordinary General Meeting (EGM) called today at the Bombay House – the Tata Sons’ headquarters, a resolution was passed with requisite majority to remove Mistry as the group’s director.
Interim Tata Sons chairman Ratan Tata, along with N Chandrasekaran, the next chief of Tata group, was present at the meeting. Chandrasekaran was announced as the next chairman of the $103 billion revenue firm shortly after the expulsion of Mistry. He is scheduled to takeover the reigns from Ratan Tata on February 21.
“The shareholders of Tata Sons Limited, at the extraordinary general meeting held today, passed, with the requisite majority, a resolution to remove Cyrus P. Mistry as a Director of Tata Sons Ltd,” the group said in its press release issued shortly after the meeting.
Mistry was removed from the top post of Tata Sons on October 24, after Tata Trusts, which holds the majority stake (66 per cent) in the company, moved a resolution against him. However, Mistry is backed by Pallonji group, which continues to hold on to 18.5 pc of the stakes in the company.
Mistry later moved the National Company Law Tribunal (NCLT), challenging his ouster, calling it ‘illegal’. The hearing in the case is scheduled on February 13.
In a strongly worded letter he wrote to Tata Board following his removal, Mistry had said, “To ‘replace’ your chairman without so much as a word of explanation and without affording him an opportunity of defending himself in a summary manner must be unique in the annals of corporate history.” Mistry further alleged that Ratan Tata wanted him to perform in a ‘lame duck’ manner.
After his ouster from Tata Sons, Mistry was gradually pushed out from more than a dozen of subsidiary companies, where he held the position of director.