Tata Sons EGM on February 6 to remove Cyrus Mistry as Director from company's board

Tata Sons called an EGM on Friday to remove Cyrus Mistry as Director from the company's board.

Mumbai: Tata Sons on Friday announced that an extraordinary general meeting (EGM) to remove Cyrus Mistry as Director from the company's board will kick off on February 6.

"Subsequent to his replacement, Mistry has made certain unsubstantiated allegations, which cast aspersions not only on Tata Sons Limited and its board of directors, but also on the Tata group as a whole. Internal communications, including confidential, were made public. Mistry's conduct has caused enormous harm to the Tata group and its stakeholders, including employees and shareholders," Tata Sons said in a note for extraordinary general meeting (EGM).

The ousted chairman's conduct, it said, "resulted in significant erosion of the market value of the Tata group companies, which has consequently resulted in harm to Tata Sons Limited and indirectly losses to its shareholders".

The notice said continuation of Mistry as a Director of Tata Sons is "untenable" and therefore, he should be removed.

The resolution, which has been moved for Cyrus Mistry's removal, said: "The board of Tata Sons Ltd is of the view that the integrity of the board proceedings is being jeopardised by Mistry's continuation as a Director and the confidentiality of the board decisions and proceedings cannot be ensured as the documents presented to the board have been leaked and made public in a distorted and untruthful manner."

Cyrus Mistry was replaced as the Chairman of Tata Sons after four years in that role on October 24, 2016.

Tata Sons also moved in fast to remove him as director in several listed and unlisted entities of the group. These were TCS, Tata Steel, Tata Motors, Indian Hotels Co Ltd, Tata Chemicals, Tata Power, Tata Teleservices and Tata Industries.

Not to be easily rolled over, Mistry while choosing not to face EGMs of shareholders, resigned from these companies as Director, but hit back by filing petition against Ratan Tata, Tata Sons and some of its directors at the National Company Law Tribunal, alleging oppression and mismanagement of minority interest.