Ishaat Hussain named interim chairman of TCS

'Hussain shall hold office as chairman of the company until a new chairman is appointed in his place'

Updated - November 17, 2021 06:25 am IST

Published - November 10, 2016 08:50 am IST

Ishaat Hussain. File Photo

Ishaat Hussain. File Photo

Ousted Tata Sons chairman Cyrus Mistry on Thursday was also removed as the chairman of Tata Consultancy Services (TCS), with immediate effect and has been replaced by Ishaat Hussain as the chairman of the Board of Directors of the company.

A source close to Mr. Mistry termed the move as displaying poor corporate governance as Mr. Mistry was replaced without any board resolution being passed.

Interim chairman

In a statement on Thursday, TCS said, “The company has received a letter dated November 09, 2016 from Tata Sons Limited nominating Mr. Ishaat Hussain as the Chairman of the Board of Directors of the company in place of Mr. Mistry with immediate effect.

In view of this, Mr. Mistry has ceased to be the chairman of the Board of Directors of the Company and Mr. Hussain is the new chairman of the Company.”

The statement added that the company had been further informed that Mr. Hussain will remain chairman until a new person is appointed in his place.

Significantly, Mr. Hussain was one of the two board members to have abstained from the meeting of the Tata Sons board, late last month, which decided to sack Mr. Mistry.

“The culture of poor governance in the Tata-Mistry saga continues,” said a source close to Mr. Mistry adding that TCS had quoted Article 90 of its Articles of Association to do so. This, the source said, only enabled Tata Sons to nominate a Chairman.” TCS has sent a notice to all stock exchanges stating that Mr. Mistry ‘stands replaced’ as Chairman by Ishaat Hussain without even a board resolution being passed.”

‘No board resolution’

Tata Sons had sent the nomination of Mr. Hussain, to the chairman’s post, to TCS on Wednesday.

“TCS had to then convene a board meeting to table the nomination or for a circular resolution. Nothing of this nature was done. In pre-mediated haste, by a letter of the same date, TCS has directly gone on to announce that Mr. Mistry stands replaced,” said a statement from Mr. Mistry’s PR agency.

TCS’ statement on the removal of Mr. Mistry said that Tata Sons had issued a special notice under Section 169 read with Section 115 of the Companies Act, 2013 and a requisition for convening an extraordinary general meeting of shareholders to consider a resolution for the removal of Mr. Mistry as Director of the Company.

“The hasty actions appear to have been done at night as the stock exchange announcement was made at 8 a.m. on Thursday,” said the source, adding that “cloak and dagger machinations with little regard to due process of law have come to define the angry strategy of the Ratan Tata camp.”

Other companies?

A legal consultant requesting anonymity said that Tata Sons, being the largest shareholder of TCS with close to 74 per cent holdings, could remove Mr. Mistry as chairman but would find it difficult to remove him from the boards of other companies where Tata Sons’ holdings ranges from 30 per cent to 39 per cent.

0 / 0
Sign in to unlock member-only benefits!
  • Access 10 free stories every month
  • Save stories to read later
  • Access to comment on every story
  • Sign-up/manage your newsletter subscriptions with a single click
  • Get notified by email for early access to discounts & offers on our products
Sign in


Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.

We have migrated to a new commenting platform. If you are already a registered user of The Hindu and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.