Ta ta? Not yet

With independent directors supporting Cyrus Mistry, Ratan Tata has his task cut out.

- Dnyanesh Jathar

On November 11, as the Tata group issued notices to three of its companies— Tata Chemicals, Tata Steels and Tata Motors—to remove Cyrus Mistry and Nusli Wadia as chairperson and director, respectively, it was clear that the conflict between between Ratan Tata and Cyrus Mistry had escalated into an all out war.

A few days earlier, Tata Sons had removed Mistry from chairmanship of Tata Consultancy Services (TCS), and replaced him with Ratan Tata’s man Ishaat Hussain. It was also proposed to remove Mistry as director of TCS through a special notice resolution by calling an EGM. “Among all listed Tata group companies, TCS has highest promoter holding, at 73.33 per cent. Removal of a director requires only 50 per cent plus shareholder approval. The board has the right to nominate/replace Chairman. However, Articles of Association of TCS gives the right to Tata Sons to nominate Chair,” explained InGovern Research, a prominent proxy advisory firm.