Tata Sons ousted chairman Cyrus Mistry’s conduct has caused enormous harm to the Tata group, Tata Consultancy Services Limited (TCSL) and its stakeholders, including employees and shareholders, said TCS in an extraordinary general meeting (EGM) notice to the shareholders.
India’s largest firm by market capitalisation has called an EGM on December 13, 2016 for removal of Cyrus Mistry as the director of the company on request of its promoter Tata Sons, with 73.26% stake in the company.
“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 TCS statement adding that the communication, which was marked as ‘confidential’, was made public causing enormous harm to the Tata group, TCSL and its stakeholders.
TCS was referring to letter bomb written by Cyrus Mistry after his removal to Tata Sons board alleging interference by Ratan Tata pushed him into the 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 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 to the shareholders.
Besides TCS, Tata Sons have asked the boards of Tata Chemicals, Tata Steel, Tata Motors and Indian Hotels to call for shareholders meeting to remove Mistry.
“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,” the notice said adding that TCSL, as an integral part of the Tata group enjoys the right to use the ‘Tata’ brand name leading to substantial goodwill and benefits accrue to TCSL by such usage of the ‘Tata’ brand and association with the Tata group.
Meanwhile, Indian Hotels has called for an EGM of its shareholders on December 20, 2016 for removal of Mr. C. P. Mistry as director of the Company.
