Tata Sons ousted chairman Cyrus Mistry’s conduct has caused enormous harm to the Tata group, said TCS in an extraordinary general meeting (EGM) notice to its shareholders.
The firm has called an EGM on December 13 in Mumbai for the removal of Mr. Mistry as the director of the company on request of its promoter Tata Sons.
“Subsequent to his replacement as Executive Chairman of Tata Sons Limited, Mr. Mistry has made certain unsubstantiated allegations, which cast aspersions not only on Tata Sons Limited and its Board of Directors, but also on the Tata group as a whole, of which TCSL is an integral part,” said a TCS statement, adding that, the communication, which was marked as ‘confidential’, has caused casued enormous harm to the Tata group, TCSL and its stakeholders.
TCS was referring to letter written by Mr. Mistry to the Tata Sons board alleging that the interference by Ratan Tata pushed him into a position of a ‘lame duck’ chairman and several irregularities in various Tata group companies leading to a potential write down of $18 billion.
Tata Sons has already replaced Mr. Mistry as the chairman of TCS and Tata Global Beverages Ltd.
“It may be noted that the Board of Directors of Tata Sons Limited has lost confidence in Mr. Cyrus P. Mistry to lead Tata Sons Limited for a combination of several factors. The Tata Sons’ Board, in its collective wisdom, took the decision to replace Mr. Mistry. The Board had felt that the removal of Mr. Mistry as Chairman was absolutely necessary for the future success of the Tata group,” read the TCS notice.
“The Board of Directors of Tata Sons Limited by its resolution dated November 9, 2016 has resolved to propose the removal of Mr. Mistry as Director of TCSL. The Board of Directors of the Company (TCS) are in agreement with the removal of Mr. Cyrus P. Mistry as Director of the Company, as the same would be in the best interests of the Company,” it added.
