Sunday 05 / May / 2024
New Delhi: Tata Group's hospitality arm Indian Hotels on Monday decided to convene an extra-ordinary general meeting of shareholders on December 20 to consider removal of Cyrus Mistry as director of the company.
In a statement issued to bourses on Monday, the company said its board, which met on Monday, has "decided to convene an extra-ordinary general meeting to pass an ordinary resolution for removal of CP Mistry as director of the company".
Tata Sons holds 28.01 per cent of share capital of Indian Hotels Co Ltd (IHCL).
"The board of directors of the company, at its meeting held on November 21 has pursuant to the special notice and requisition dated November 9 sent by Tata Sons, shareholder of the company holding 28.01 per cent of the paid-up equity share capital of the company... decided to convene an EGM to consider and if thought fit, to pass an ordinary resolution for removal of CP Mistry as director of the company," IHCL said in a filing to BSE.
The EGM will be held on Tuesday, December 20, 2016 in Mumbai, it added.
Mistry continues to be the chairman of IHCL.
The Ratan Tata-led interim management of Tata Sons is seeking to oust Mistry from his positions in the operating group firms, including IHCL and Tata Motors.
The EGM comes after the company's board of directors on November 4 supported Mistry's leadership and continuance as chairman of the company.
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.
After ousting Mistry from Tata Sons, the holding company of 100-odd firms with India's largest conglomerate, promoter Tata Trust is looking at removing him from the operating companies as well.
In the days that followed, Mistry was removed as Chairman of Tata Global Beverages, besides TCS.
He continues to be chairman of IHCL, Tata Motors and Tata Chemicals.
TCS is the crown jewel of the Tata Group which "enjoys the right of use the 'Tata' brand name by virtue of the Tata Brand Equity and Business Promotion Agreement entered into between TCS and Tata Sons," the notice said.
"Substantial goodwill and benefits accrue to TCS by such usage of the Tata brand and association with the Tata group."
Even after being removed as chairman of Tata Sons, Mistry continues to head the group's several listed firms including Tata Motors, Tata Power, Tata Steel and 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 and can be removed only by a shareholder vote.
Besides TCS, Tata Sons has asked Indian Hotels, Tata Motors and Tata Chemicals to call EGMs to consider removing Mistry as a director on the board.
Boards of none of these companies have so far decided on the date for EGM and TCS is the first company to fix a date for considering a Tata Sons-sponsored resolution to this effect.
As for his removal as TCS chairman, Mistry had termed the move as reflection of "cloak and dagger" machinations that define "the angry strategy of the Ratan Tata camp". Last week, Mistry skipped two crucial board meetings -- of TCS as well as the group's holding company.
Even as Mistry skipped the board meeting of TCS, the family-appointed Chairman Hussain chaired the meeting and decided to convene the EGM on December 13.
Mistry was also not present at TSL's first board meeting since his removal on October 24.
Last month, in a sudden and dramatic turn of events, 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.
