In a move aimed at putting an end to the Mistry family's involvement in the board decisions of Tata Sons, the holding company (Tata Sons) for all the Tata group companies has sent out a notice seeking the removal of the embattled former chairman Cyrus Mistry from its board.
Mistry, who voluntarily decided to quit from the chairman's position from other Tata group companies last month, was still on the board of Tata Sons. In fact, Mistry had then denied any plans of leaving Tata Sons, and said ""No I won't. Not unless they plan to throw me out," The Economic Times report said quoting Mistry.
However, the Tata group was already working on plans to remove Cyrus from the holding company's board, and finally sent a notice to him in this regard a day before.
The shareholders meeting will be held early next month for the removal of Mistry from the board of Tata Sons. The meeting will take place after the National Company Law Tribunal hears the petition filed by Mistry-family owned entities against Tata Sons on January 31, the ET report said.
Allegations and counter allegations continued between the two warring parties in the last week of December. Recently, Tata Sons demanded that the ousted chairman return all confidential information and documents regarding the company in his possession, in its second legal notice in as many days.
Tata Sons said Mistry was privy to confidential and commercially sensitive information and documents in his capacity as executive chairman and director of the company and its operating firms.
The letter, sent by Tata Sons' lawyers, further demanded that Mistry sign a letter pledging not to disclose any confidential information regarding the company, including to affiliates, relatives and family members."We have credible information that you have wrongfully and dishonestly taken movable property being confidential information," said the letter, a copy of which was seen by Reuters.
The notice comes after Tata Sons, the holding firm for the $100 billion Tata conglomerate, had accused Mistry of breaching confidentiality rules, and said it would take legal action against him.
Mistry had last week filed a petition seeking the intervention of the National Company Law Tribunal, accusing the conglomerate of shareholder oppression and mismanagement.
Published Date: Jan 04, 2017 12:03 PM | Updated Date: Jan 04, 2017 12:03 PM