Remove Cyrus Mistry as TCS chairman, appoint Ishaat Hussain as interim chairman, ask Indian Hotels to hold EGM
After a studied silence of 17 days, the Tata and Mistry camps are at it again.
On Thursday, Tata Sons kick-started the process of removing Cyrus Mistry from all Tata Group companies, in many of which he continues to hold the post of chairman.
To start with, it has already removed him as the chairman of its IT & ITeS company, Tata Consultancy Services (TCS).
In a notification to the bourses, TCS said that its parent Tata Sons replaced Mistry by nominating Ishaat Hussain as interim chairman of the company. “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 until a new chairman is appointed in his place,” TCS said in a statement.
Taking it further, Tata Sons submitted a requisition to Indian Hotels Co Ltd (IHCL) to convene an extra-ordinary general meeting (EGM). Tata Sons holds 28.01% of the paid-up equity share capital of Tata Group’s hospitality venture.
What led Tata Sons to push for this move is evident from the excerpts out of the nine-page letter it shared on Thursday.
The Mistry camp isn’t taking the allegations lying low like before.
Sources close to Mistry said that IHCL independent directors – including one who is also a director of Tata Trust – demonstrated true independence by expressing their full confidence. “The alleged ‘ulterior motive’ of taking over control of companies, giving the example of Indian Hotels only because independent directors, one of whom is also a director of Tata Trust, demonstrated true independence, is not in keeping with Tata governance standards,” a source close to Mistry.
In an earlier conversation with DNA Money, experts said post the IHCL independent director’s meet, it’s likely that other independent directors may also vote in the favour of Mistry’s leadership in the coming days/weeks.
The presumption has, in fact, come true with the independent directors of Tata Chemicals on Thursday unanimously affirming their confidence in the Board, its chairman and the management in the conduct of company’s business.
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