Tata tightens grip, Mistry removed as director of TCS


File photo of Ratan Tata with ousted Chairman of Tata Sons, Cyrus Mistry. Photo - PTI

File photo of Ratan Tata with ousted Chairman of Tata Sons, Cyrus Mistry.
Photo – PTI

Cyrus P Mistry was on Tuesday removed as director of Tata Group’s crown jewel, Tata Consultancy Services (TCS) with 93.11 per cent of shareholders present at the extra-ordinary general meeting voting for his ouster.

Of the 197.04 crore shares in TCS, 170.85 crore shares were polled at the EGM called to consider a special resolution moved by Tata Sons seeking removal of Mistry.

Of the shares voted, 93.11 per cent voted for the resolution while 6.89 per cent voted against, the company said.

The number of shares voted represented 86.71 per cent of the total shareholding of TCS. Tata Sons, which is the holding company of the USD 103 billion salt-to-software conglomerate, holds over 73 per cent of TCS shares.

Mistry was on October 24 abruptly removed as Chairman of Tata Sons but he continues to head several operating companies of the Group. His predecessor Ratan Tata, who replaced Mistry as the interim chairman, is trying to tighten his grip by seeking to removal Mistry from boards of the operating companies as well.

On Monday, Tata Industries – a subsidiary of Tata Sons, removed Mistry as Director after a shareholder vote. After his removal from board, Mistry also ceased to be the Chairman of Tata Industries.

Tata Sons by virtue of its commanding shareholding had last month removed Mistry as Chairman of TCS and brought old hand Ishaat Hussain in the interim. Mistry, however, had continued on the company board and could have been removed only by a shareholder vote.

On requisition of Tata Sons, TCS called an extraordinary general meeting (EGM) here where Mistry was voted out.

A similar meet of shareholders of unlisted Tata Teleservices is scheduled for tomorrow. EGMs of other group firms like Tata Motors, Tata Power, Tata Chemicals and India Hotels are scheduled for next week.