Tata Consultancy Services (TCS), India’s most valued firm and Tata Group’s jewel Crown has decided to convene an extraordinary general meeting (EGM) on December 13 to approve a resolution for removal of Cyrus Mistry as director of the company even as the ousted Tata Sons chairman Cyrus Mistry skipped the board meeting.
TCS board meeting was chaired by newly appointed Chairman Ishaat Hussain at TCS House in Mumbai on Thursday morning as Tata Sons, the parent firm with 73.36 per cent stake nominated group veteran Hussain as the chairman of the board to replaced Mistry last week.
After the board meet, when asked for comments, Mr. Hussain said communication will happen only through an official statement.
TCS official statement in the evening said that EGM seeking Mistry’s removal will be held on Tuesday, December 13, 2016, at 3:30 p.m. at Yashwantrao Chavan Pratishthan Auditorium, Y.B. Chavan Centre, General Jangannath Bhosle Marg, Mumbai – 400021.
J.N. Gupta, co-founder and managing director of Stakeholder Empowerment Services believes that TCS EGM will be cakewalk for Tata Sons, given its 73% stake.
“Now TCS will issue notice to all the share holders, which is likely to have proper explanation from Tata Sons reasoning for Mistry’s removal as director. TCS will be easiest of easy EGM for Tata Sons, given it holds over 73 per cent stake. After the voting on December 13, it will be clear who stands where as in whom the institutional investors vote for. This is because the mutual funds will have to disclose their voting pattern after December 31,” Mr. Gupta told The Hindu.
Ishaat Hussain along with TCS MD and CEO N Chandrasekaran – left for group headquarters Bombay House for Tata Sons' board meet late in the afternoon.
TCS shares closed down 2.2 per cent at Rs. 2142 valuing the company at Rs. 4,22,095 crore. India’s largest software exporter lost over Rs. 56,000 crore in the last 25 days since Tata Sons removed Cyrus Mistry as the chairman leading to series of allegations and counter allegations from both sides.
