All has not been well for Cyrus Mistry for a long time now. Another major Tata firm, TCS has followed the league of Tata Global Beverages to start the process of removing him as a director. In a recent development, TCS board met at their office at downtown in Mumbai; however, there were no leaking from this meeting. All the members were mum when asked about the meeting information.
In a BSE filing TCS, the largest software company in India mentioned that “the Board of Directors of the company, at its meeting held on November 17, 2016 has decided to convene an EGM pursuant to the Special Notice & Requisition dated November 9, 2016 sent by Tata Sons, shareholder of the company holding 73.26 per cent of the paid-up equity share capital of the company, to consider and if thought fit, to pass a resolution for removal of Mr CP Mistry as Director of the company”.
Last week, the largest shareholder of TCS, the Tata Sons appointed Ishaat Hussain as the chairman. This was the first board meeting under his leadership. TCS has decided to convene an extraordinary general meeting on December 13 to seek shareholders’ nod for removing Mistry from the board.
Last month, Cyrus Mistry was unceremoniously fired as the Chairman of Tata Sons. Ratan Tata him as the interim chairman, this decision led to the confrontation between the single-largest shareholder and the company’s founding family. Tata Sons is trying to take the control back in their hand ever since and many of the Tata firms have started the process of removing Mistry as their director.
Since his removal as Tata Sons chairman, Mistry is said to selectively leaking the information to showcase the misery of Tata group of companies. Today Cyrus Mistry did not attend the board meetings of TCS and Tata Sons showing his anger towards his firing.
Recently held board meetings of Tata companies have indicated a very difficult situation for Tata Sons as independent directors of Tata Motors, Indian Hotels and Tata Chemicals have backed Mr. Mistry, his strategy and that of the management while Tata Steel independent directors could not agree on a statement of support.
Tata Sons board meeting which held today seem to offer a truce between Tata and Mistry. A team of Tata loyalist and Cyrus Mistry met today at Taj Colaba. The details of the meeting are not out yet. If multiple sources are to be believed, an amicable settlement plan is in the process.