Tata Turmoil : EGM convened for ousting Cyrus Mistry from Indian Hotels
In a statement issued to the bourses, the company said its board, which met today, has "decided to convene an extra-ordinary general meeting to pass an ordinary resolution for the removal of C P Mistry as director of the company". Tata Sons holds 28.01 per cent of the share capital of Indian Hotels Co Ltd (IHCL).
The battle between Tata Sons and Cyrus Mistry continues to escalate. On Monday, Tata Group's hospitality arm Indian Hotels informed the stock exchanges that its board has 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 the bourses, the company said its board, which met today, has "decided to convene an extra-ordinary general meeting to pass an ordinary resolution for the removal of C P Mistry as director of the company".
"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 C P Mistry as director of the company," IHCL said in a filing to BSE and NSE.
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. But some of the independent directors are said to have been stalling the move by lending their support to Mistry.
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, promoter Tata Trust is looking at removing him from 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.