Tatas seek stakeholders nod to change status to private ltd. company, Mistry to vote against it

As Tata Sons sought shareholders' nod to change the company's status to private limited firm, Cyrus Investments, one of Shapoorji Pallonji family's holding companies, has objected against it. 

Cyrus Investments said that the move would oppressed the minority shareholders. The Mistry family holds 18.4 per cent equity stake in Tata Sons.

Tata Sons Ltd is looking to change its status from a public limited company to a private limited one and has sought approval from its shareholders to amend its memorandum of association and articles of association for the same, the Business Standard reported on Friday, citing the holding firm’s notice to its shareholders ahead of the annual general meeting (AGM) scheduled for 21 September.

It has also sought to change the name of the company from Tata Sons Ltd to Tata Sons Pvt. Ltd, the report said.

"The proposal to convert Tata Sons from a public company to a private company constitutes yet another act of oppression of the minority shareholders of Tata Sons at the hands of the majority shareholders," stated BS report quoting Cyrus Investments' letter to Tata Sons' board of directors.

"The real motive behind convening the proposed AGM is mala fide and for an ulterior purposes and the proposed resolutions are not in the interests of Tata Sons as a whole or at all, [sic]" says the letter.