Cyrus Mistry has been shown the door as the director of Tata Industries, thus stepping up the battle that erupted after Mistry‚Äôs sacking.
Mistry, who was earlier removed from the post of chairperson of Tata Industries, was removed as director after an Extraordinary General Meeting (EGM) on December 12.
Six other companies, Tata Consultancy Services, Indian Hotels, Tata Motors, Tata Chemicals, Tata Power and Tata Steel, have also called EGMs.
Last week Tata Group interim chairperson Ratan Tata wrote to shareholders seeking their support in removing Mistry. TCS, which has its EGM slated for December 13, will seek Mistry’s ouster. In fact, electronic voting for TCS EGM is underway.
Tata Industries promotes Tata ventures in sectors, including control systems, IT, financial services, auto components, advanced materials, telecom hardware and telecommunication services. Tata Sons is sponsoring the EGMs and for the same is consulting lawyers, Mohan Parasaran and Harish Salve.
Citing corporate governance issues, an analyst said many foreign investors have raised concerns over removing Mistry.
In a statement, Tata Sons said over the past four years, Mistry had steadily concentrated all powers in his hands as chairperson of major Tata companies. It said he diluted representation of Tata Sons on the boards of Tata companies, which was against the past practices and traditions of the group. .
Though Mistry claimed he wasn’t given a free hand, but ‚Äúin our view it was this free hand and trust in him that he (Mistry) took advantage of to weaken the management in Tata companies, it added.