Following several exits, Cyrus Mistry, the ousted chairman of Tata Sons, may also be removed from the board of Tata Sons. Tata Sons served a notice to Mistry on Tuesday informing him about the company's intention.
"Tata officials are going to meet over the next couple of days to take stock of the entire situation. There is a proposal to remove Mistry from the board," a person aware of the development, was quoted as saying by Mint. A formal meeting of shareholders to ratify the move, will reportedly be held in early February once the National Company Law Tribunal has heard the petition filed by Mistry-family against Tata Sons on January 31.
However, in an email query to The Hindu, the Tata Sons spokesperson said, "No such decision has been taken by the Tata Sons Board."
According to various media reports, since Tata Trusts holds 66 percent majority, the proposal is likely to get a thumbs up (to oust Mistry). On the other hand, Mistry's family holds 18.4 percent stake in Tata Sons, and is likely to vote against the proposal. Despite that, the resolution is likely to be passed.
According to the publication, Tata Sons will cite "breach of confidentiality" as the primary reason for seeking Mistry's ouster.
Tata Sons, the holding company of the $114 billion salt-to-software conglomerate had served a legal notice to its former chairman, Cyrus Mistry, on December 27. "By passing confidential and price-sensitive information accessed by you in your capacity as a director of Tata Sons to companies owned and controlled by your family, you have acted in complete violation of your confidentiality undertakings to Tata Sons and your obligations under the Tata Code of Conduct," the legal notice stated.