Cyrus Mistry voted out as director of Tata Sons
The resolution was moved by four Tata Sons shareholders: JRD Tata Trust, Tata Education Trust, Tata Social Welfare Trust and R D Tata Trust.
In a finality of Cyrus Mistry's association with Tata's the board has now removed him as a director of Tata Sons by a majority vote of Shareholders on Monday.
The extraordinary general meeting (EGM) of Tata Sons held at the company headquarters had but one agenda: Mistry's removal as director. Tata trusts and group companies which hold the controlling stake, as well as sections of the Tata clan, voted in favour of the resolution.
However, a few members of the family abstained. Mistry himself stayed away but, through a proxy, voted against the resolution. Ratan Tata's brother Jimmy Tata, Piloo Minocher Tata (wife of a grandnephew of group founder Jamsetji Tata) and her children — Jimmy M Tata and Vera Farhad Choksey — were among those who abstained.The MK Tata Trust (Piloo Tata is a trustee here), Maharaja Virendra Singh Chauhan, Tata Industries, Tata International and Tata Investment Corporation were the other shareholders who abstained.
The resolution was moved by four Tata Sons shareholders: JRD Tata Trust, Tata Education Trust, Tata Social Welfare Trust and R D Tata Trust. After the dismissal of the petition, an appeal was made before an appellate bench, which refused to stall the meeting. However, the case continues at the tribunal where it will come up for the hearing later this month.
Mistry and his family hold 18.4 per cent (74,352 shares) in Tata Sons.With Mistry voted out, it brings to an end his family's decades-old representation on the board.
Mistry became a director of Tata Sons in 2006 after his father retired from the company. Though the family does not have a right to a board seat, it was given a non-executive directorship to acknowledge its sizeable stake in the Tata Sons.
Currently, there are 11 directors on the board of Tata Sons. With Ratan Tata stepping down on February 20, there is room to induct one more individual on the board.