Mumbai: The boardroom battle between Tata Sons and its former chairman refuses to end with Cyrus Mistry being removed as the director of Tata Industries.
The announcement was made by a spokesperson of Tata Sons on Monday. According to sources in the company, Mistry was voted out at the EGM (Extraordinary General Meeting) of the Tata Industries.
Along with losing the position of the company director, Mistry also ceases to be its chairman. Tata Industries is a subsidiary of Tata Sons. Several companies, including Tata Motors, Tata Power, Tata Steel, hold equity in the company. Tata Industries promotes Tata’s entry into new businesses and invests in operating companies to facilitate growth.
Sources said that the Tata Sons has appealed to the shareholders of the companies under the Tata Group to remove Mistry from the board, saying his presence as a director “is likely to lead to fragmentation of the Tata Group”.
In the next few weeks, at least six Tata Group companies are expected to hold such meetings to remove Cyrus Mistry from the position of director.
In October, Mistry was removed as the chairman of Tata Sons, the holding firm of the $100-billion Tata empire, but he remains on the board of several group companies.
Just a day ago, Mistry had dragged the conglomerate in the AgustaWestland scam. Mistry, who was unceremoniously removed as the group’s chairman, claimed that Tata Sons Director Vijay Singh played ‘a key role’ in the AgustaWestland scam.
Earlier in a scathing counter-attack on Cyrus Mistry, the Tata Sons had said that the former chairman acted arbitrarily putting conglomerate’s interests at risk.
“Cyrus Mistry misled the Selection Committee set up in 2011 for selecting a Chairman of Tata Sons to succeed Ratan Tata, by making lofty statements about his plans for the Tata Group and more importantly indicated an elaborate management structure for managing the Tata Group,” Tata Sons said in a statement.