Tata Sons has begun the process of removing Cyrus Mistry as the Chairman of its group entities. On Thursday, Tata Consultancy Services has said that Tata Sons has appointed Ishaat Hussain as the chairman of the company. Tata Sons has also issued a special notice to convene an extraordinary general meeting.
"The company has received a letter dated November 9, 2016 from Tata Sons Limited nominating Mr Ishaat Hussain as the Chairman of the board of directors of the company in place of Cyrus P. Mistry with immediate effect. In view of this, Mistry has ceased to be the Chairman of the board of directors of the company and Hussain is the new Chairman of the company. The company has been further informed that Hussain shall hold office as Chairman of the Company until a new Chairman is appointed in his place," said the statement issued to the stock exchange.
"Tata Sons Limited has issued a special notice under Section 169 read with Section 115 of the Companies Act, 2013 and a requisition for convening an extraordinary general meeting of shareholders of the Company under Section 100(2) of the Companies Act, 2013 to consider a resolution for the removal of Mr. Cyrus P. Mistry as director of the Company," it added.
Tata Sons holds 73.33 per cent stake in TCS. The Section 115 of The Companies Act 2013 lays down the law for resolutions requiring special notice. “... notice of the intention to move such resolution shall be given to the company by such number of members holding not less than one per cent of total voting power...” it said
This comes even as Tata Chemical is set to have its board meeting today.