Cyrus Mistry removed as director of TCS after 93.11% shareholders vote for his ouster
Mistry was removed as the director of Tata Industries in an Extraordinary General Meeting on Monday
After 93.11 per cent of shareholders voted in favour of the resolution to ouster him, former Tata Sons chairman Cyrus Mistry was on Tuesday removed as the director of Tata Consultancy Services (TCS) in an extraordinary general meeting (EGM) held in Mumbai.
The company reportedly said 86.71 per cent of company’s equity shareholders voted in the EGM and 6.89 per cent voted against the resolution.
Mistry was removed as the director of Tata Industries in an Extraordinary General Meeting on Monday.
After the extraordinary meeting, Cyrus Mistry’s office hailed the vote as "a big moral victory" for governance, media reports said.
"Almost 20% of shareholders of TCS that accounts for more than 70% of non-promoter shareholders supported Cyrus by voting against the resolution or abstained (expressing their disapproval of the promoter actions)," a statement from Mistry’s office read.
Earlier, Aman Mehta, an independent director (ID) who chaired the meeting, faced criticism from shareholders for his failure to convince on the reasons for Mistry’s removal from the board of TCS.
Mistry did not attend but sent a letter hours before the meeting asking the shareholders to vote with their conscience.
Mistry, in a letter sent to the TCS shareholders before few hours of the meeting, said the future of the company hinged on good performance and ethical practices, media reports said.
“Whatever be the decibel level of the voice that will drown your vote, I call on you to vote with your conscience and send a signal that catalyses a larger discussion on governance reform, to save the very fabric of what we have all inherited – the Tata Values that our founders handed us,” Cyrus Mistry said.
Mistry was abruptly ousted as chairman of Tata Sons — the holding company of the USD 103 billion salt-to-software conglomerate — on October 24. Since then, interim Chairman Ratan Tata has moved to consolidate his position by seeking to remove Mistry from boards of key listed firms.