Industrial conglomerate Tata Group's holding company Tata Sons on Monday said that a majority of its shareholders during an extraordinary general meeting (EGM) held here have voted to remove Cyrus Mistry as a Director on its Board.
"The shareholders of Tata Sons, at the extraordinary general meeting held today, passed, with the requisite majority, a resolution to remove Cyrus P. Mistry as a Director of Tata Sons," the company said in a statement.
On Friday, the National Company Law Appellate Tribunal (NCLAT) quashed a set of petitions filed by Mistry against the shareholder meeting called by the Tata Group holding company to seek his removal.
The NCLAT declined to stay the EGM of Tata Sons, and during the proceedings it suggested parties to go for an "honourable settlement" as it was denting the image of both sides and may hurt their business interests and morale of their employees as well.
The tribunal asked counsels representing both the sides to consult and explore any "probability of sitting between parties to find any honourable settlement" and adjourned the matter for 15
minutes. However, both the side could not reach on a common point.
Senior advocate C A Sundaram appearing for the two Mistry family-backed investment firms, which had petitioned the NCLAT, had suggested to defer the EGM for one or two months and during this period his side would negotiate and try to resolve the issue.
However, senior advocate Abhishek Manu Singhvi representing Tata Sons had said, "Let the meeting take place as mandate of the shareholders should be honoured ... However we will keep one seat vacant on the board for next 30 days."
On 31 January, the Mumbai bench of National Company Law Tribunal (NCLT) had refused to grant a stay on the Tata Sons EGM, saying that issue had already been decided in the previous hearing when the contempt petition filed by two Mistry family companies was dismissed.
"There are no roadblocks for Tata Sons to hold the EGM," the division bench of NCLT comprising B S V Prasad Kumar (Member-Judicial) and V Nallasenapathy (Member-Technical) had said.
On 18 January, NCLT had dismissed contempt plea filed by the Mistry group companies alleging violation of NCLT directives in taking steps to remove Mistry from the Board of Tata Sons.
In December, Mistry had quit from boards of all six key operating companies of the group and also launched a scathing broadside against Ratan Tata and vowing to shift his fight to a "larger platform".
Mistry had continued to be on boards of operating companies even after his ouster as Chairman of Tata Sons on 24 October.
Both the Tata and Mistry camps have been involved in a war of words with each other after the sudden ouster. While Mistry has alleged that he was not given any concrete reason for his dismissal, the Tatas have said that he has been removed as he lost the trust of the directors of the Tata Sons.
With inputs from agencies
Published Date: Feb 06, 2017 17:28 PM | Updated Date: Feb 06, 2017 17:32 PM