New Delhi: Seeking to tighten its grip over the USD 103-billion group, Tata Sons asked Tata Power to call a meeting of shareholders to consider removing Cyrus Mistry as director of the company even as another group firm, Tata Chemicals, fixed the date for the same. Tata Sons, the holding company of the salt-to-software conglomerate, had last month ousted Mistry as its chairman and has since then sought to remove him from the group’s listed companies, a few of which he heads and is on board of others. Tata Power in a regulatory filing said it has received a notice from its principal promoter Tata Sons seeking convening of an extraordinary general meeting of shareholders to oust Mistry as director on the company board.
On the other hand, the board of Tata Chemicals, where such a request had previously been made by Tata Sons, fixed December 23 as the date for calling the EGM for removing Mistry as well as friend-turned-foe independent director Nusli Wadia as directors of the company.
Mistry is chairman of Tata Chemicals. The board of Tata Global Beverages, the Indian partner of Starbucks Coffee, last week voted him out as the chairman. But he continues to be on its board as well as other firms and can be removed only by a shareholder vote.
Tata Sons used its commanding 73.26 per cent stake in the group’s most successful company, Tata Consultancy Services (TCS), to remove Mistry as its chairman. An EGM has been called on December 13 to remove him as director. Indian Hotels Co Ltd, the firm that runs the Taj Group of hotels, has called a meet on December 20 to consider Tata Sons’ proposal to remove Mistry as director of the company. Tata Sons holds 28.01 per cent of share capital of IHCL.
In a sudden and dramatic turn of events last month, Mistry was unceremoniously removed as the chairman of Tata Sons and replaced by his predecessor Ratan Tata in the interim, triggering a confrontation between the single-largest shareholder and the Tatas. In a regulatory filing, Tata Power said, “The company has received a Special Notice… From Tata Sons, the company’s promoter and shareholder holding 31.05 per cent of the paid-up equity share capital of the company, for convening an Extraordinary General Meeting of the members of the company for considering and passing resolution for removal of Cyrus P Mistry as director of the company.” Tata Sons had on November 10 asked Tata Chemicals to call an EGM.
Tata Sons holds 19.35 per cent in the company. In a filing to the BSE, Tata Chemicals said the board, at its meeting held today, decided to convene an EGM “to consider and if thought fit, to pass an ordinary resolution for removal of CP Mistry and Nusli Wadia as directors of the company”. It has also received two notices dated November 16 under Section 160 of the Companies Act, 2013 from Tata Sons, “signifying their intention to propose the candidatures of Bhaskar Bhat and S Padmanabhan to the office of director of the company at the ensuing EGM”. “Accordingly, the proposal for their appointment will also be included in the EGM Notice,” it added. The EGM will be held on December 23 in Mumbai.