BUSINESS

Tata Sons Shareholders Remove Cyrus Mistry As Director

The motion was approved by a clear majority.

06/02/2017 5:51 PM IST | Updated 06/02/2017 6:01 PM IST
Amit Dave / Reuters

NEW DELHI -- After an appeal filed by Former Chairperson of Tata Sons Ltd, Cyrus Mistry was rejected by the National Company Law Appellate Tribunal (NCLAT), the shareholders at Tata Sons Ltd passed a motion against Mistry at a general meeting held on Monday.

This motion was approved by a clear majority, thereby facilitating his removal as a director of Tata Sons Ltd.

"The shareholders of Tata Sons Limited, at the extraordinary general meeting held today, passed, with the requisite majority, a resolution to remove Mr. Cyrus P. Mistry as a Director of Tata Sons Limited," read the official statement released by Tata Sons Ltd. on Monday.

Prior to this, Mistry had moved against the decision of the NCLAT's Mumbai bench, which permitted Tata Sons to hold the extraordinary general meeting, claiming that the meeting was called to consider Mistry's removal from its board. Subsequently, on 3 February, 2017, the appeal was dismissed by the two member-NCLAT bench headed by Chairperson S J Mukhopadhya.

Cyrus Investment Pvt. Ltd and Sterling Investment Corp Ltd, which together hold 18.5 percent of ordinary share capital in Tata Sons, had filed a contempt of court petition at the NCLAT seeking a stay on Tata Sons Ltd holding a meeting to remove him as a director of the board.

The petition seeks punishment including simple imprisonment for a term which may extend up to six months, or a fine which may extend to ₹2,000, or both.

Mistry was sacked as the chairman on 24 October, 2016 after which he resigned from the board of the company. Thereafter, alleging mismanagement at the firm and oppression of minority shareholders, he dragged Tata Sons to the tribunal.

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