'Mistry's conduct caused harm to group and TCS'

IHCL to hold EGM to seek Mistry ouster

Tata Sons, the promoter of Tata Consultancy Services (TCSL) and which holds 73.26% of the equity share capital of TCSL, has stated that Cyrus Mistry’s conduct caused enormous harm to the group and TCS. “Mistry’s conduct has caused enormous harm to the Tata Group, TCSL and its stakeholders, including employees and shareholders,” Tata Sons said in an explanatory statement to the exchanges as part of information provided for conducting an extraordinary general meeting of TCS to oust Mistry as a director of TCSL.

The board of directors of the company are in agreement with the explanatory statement for the removal of Cyrus Mistry as director of the company, as the same would be in the best interests of the company, TCSL added. On November 9, 2016, Tata Sons had nominated Ishaat Hussain as the chairman of the board of directors of TCSL in place of Cyrus Mistry. Consequently, Cyrus Mistry had ceased to be the chairman of the board of directors of TCS and Ishaat Hussain was appointed as the chairman  of TCSL with effect from November 9, 2016, until a new chairman is appointed in his place by Tata Sons.

Tata Sons has asked for EGMs of companies including Tata Steel, Tata Motors and Tata Chemicals for the ouster of Cyrus Mistry as director. Mistry had also been removed as chairman of Tata Global Beverages and replaced by Harish Bhat. Meanwhile, the board of Indian Hotels (IHCL) has decided to convene an EGM to seek removal of Cyrus Mistry as a director.

“The board of directors of the company, at its meeting held on November 21, 2016 has pursuant to the special notice and requisition dated November 9, 2016 sent by Tata Sons, shareholder of the Company holding 28.01 % of the paid-up equity share capital of the company and in recognition of the legal right vested in them as shareholder, decided to convene an EGM, to consider and if thought fit, to pass an ordinary resolution for removal of CP Mistry as director of the company,” IHCL said in an intimation to the exchanges.

The EGM will be held on Tuesday, December 20, 2016 at 11 am at Patkar Hall, Churchgate, Mumbai, IHCL added.