Mumbai: Tata Sons Ltd on Thursday moved the apex court against the re-instatement of Cyrus Mistry as executive Chairman and also against his immediate re-instatement as director of the Tata Sons and three group companies – Tata Consultancy Services Ltd (TCS), Tata Industries Ltd and Tata Teleservices (Maharashtra) Ltd.
The petition would be heard on 6 January when the court re-opens after winter vacation. The petition is seeking urgent relief ahead of TCS board meeting on 9 January, as the board is meeting to consider its third quarter earnings and would need to decide on re-instatement of Mistry as a director.
The appeal comes after the National Company Law Appellate Tribunal (NCLAT) on 18 December reinstated ousted chairman Cyrus Mistry and held as illegal the appointment of N. Chandrasekaran as his successor. The appeals court had cited the haste in removal of Mistry as chairman of the Tata group’s holding company, ignoring the interest and oppression of minority shareholders, and mismanagement at Tata Sons as reasons for the ruling.
The NCLAT had also mandated restoring Mistry as a director immediately in these three Tata Group companies. So, while Mistry technically becomes a director of these companies from the moment of the NCLAT order, in reality he will have to wait till the boards of these companies meet.
The NCLAT will also hear Registrar of Companies (RoC) review petition today against the appellate ruling which had termed Tata Sons conversion from public to private as illegal.
The change in status, undertaken in September 2017, would have required Mistry’s family firms to seek approval from the Tata Sons board to sell their shares. Firms of the Mistry family headed by billionaire Pallonji Mistry, namely Cyrus Investments Pvt. Ltd and Sterling Investments Pvt. Ltd own 18.4% of ordinary shares in Tata Sons.
Mistry was removed as chairman of Tata Sons in a surprise move on 24 October 2016. He was later also ousted as a director from the holding company’s board, followed by his removal from several operating companies in the group.
News Source:- livemint