Cyrus Mistry’s ouster from Tata group is set to be complete on Monday with Tata Sons holding an Extraordinary General Meeting (EGM) to remove the former Chairman from the position of director, a position he held since 2006. This is the last official position Mistry holds across Tata group companies.
Mistry had unsuccessfully moved National Company Law Tribunal (NCLT) and later National Company Law Appellate Tribunal (NCLAT) seeking a stay on the EGM. NCLT will now hear Mistry camp’s original petition, challenging his ouster as the Chairman of Tata Sons, on February 13 and 14. NCLT has said that in case the petitioner fails to argue, the case will be dismissed.
The original pleas had been filed by two of Mistry’s family-owned firms — Cyrus Investments and Sterling Investment Corporation — on December 20, 2016.
Through his family firm Shapoorji Pallonji Group, Mistry is the single largest shareholder in Tata Sons with an 18.5 per cent stake, which is held through two group companies Cyrus Investments and Sterling Investment Corp.
However, with Tata Trusts holding a majority 66 per cent stake in Tata Sons, Mistry’s ouster is almost certain.
The remaining stake is held by various Tata group companies such as Tata Power, Tata Tea, Indian Hotels Company Ltd, Tata Chemicals and Tata Motors.
Mistry was ousted as chairman of Tata Sons on October 24 following a boardroom tussle, with chairman emeritus Rata Tata taking over as interim chairman.
The company recently appointed Tata Consultancy Services’ Managing Director and CEO N Chandrasekaran as the group’s chairman.
He will take charge on February 21.