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The date for Tata Consultancy Services (TCS) Board meeting to take on record its third-quarter earnings would now be decided only after clarity emerges on the status of Cyrus Mistry’s directorship with the company.
“TCS, which moved Supreme Court last week, has a sought to set aside the National Company Law Appellate Tribunal (NCLAT) ruling to reinstate Cyrus Mistry as a director on its board. On the directorship, TCS needs clarity, following which it would conduct the board meeting,” a source close to the development told BusinessLine.
“TCS is hopeful of getting a stay on its petition filed before Supreme Court,” he added. This is despite Cyrus Mistry, the ousted chairman of Tata Sons who has won an order in his favour to be reinstated, stating he would not seek a director seat on board of TCS or other Tata firms.
Also Read: Cyrus Mistry not to return as Tata Sons chief, says ‘fight was never about me’
“Even though, certain media statements were issued on this, there is no official communication on this to appellate tribunal or to the company,” another source said. IT bellwether TCS has been kick-starting the earning season for the past two years, but this time it would be opened by Infosys on January 10.
As per regulations, a company has to inform the stock exchange at least seven days prior to its board meeting date. TCS is yet to notify BSE on its Q3 initiatives.
Tata Sons, its Chairman Emeritus Ratan Tata, TCS and Tata Teleservices have moved the apex court separately seeking a stay on the NCLAT’s December 18, 2019, order that reinstated Mistry. Being a director, Mistry has to be invited for TCS’ and TTSL’s board meetings.
Also Read: Mistry case: Ratan Tata moves Supreme Court in personal capacity
Also read: Tata Trusts, TCS, Tata Tele move SC seeking to set aside NCLAT ruling
In a media statement issued on January 6, Mistry said the fight was not a quest for position or power but to protect minority shareholders’ rights. Mistry also stated he will not pursue directorship of TCS, TTSL and Tata Industries.
However, he will seek a seat on the Tata Sons board, which the Shapoorji Pallonji Group (SP Group) had held for nearly 30 years.
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