Tata Industries has removed Cyrus Mistry, former chairman of Tata Sons, as a director of the company. At an extraordinary general meeting (EGM), a majority of shareholders voted in favour of his removal. This was on expected lines at the $103bn salt-to-software conglomerate.
Six Tata group companies: Tata Consultancy Services, Indian Hotels, Tata Motors, Tata Chemicals, Tata Power and Tata Steel had called an EGM to remove Mistry from the Tata Sons subsidiary. Mistry, 48, expectedly, did not attend the meeting.
Following his sacking from Tata Sons, attempts are on to eject him other Tata companies as well. An EGM of Tata Consultancy Services, the group's cash cow and widely considered as the crown jewel, will take place on 13 December when Mistry is expected to meet a similar fate.
"Tata Industries, at its extraordinary general meeting on 12 December 2016, removed Cyrus P Mistry, as a director of the company. Hence, he also has ceased to be the chairman of the company," said an official statement from Tata Industries. Mistry was forced to exit the Tata group of companies on 24 October leading to an ugly spat within the 148-year-old-group.
Ratan Tata, the 78-year-old patriarch who is back at the helm following Mistry's exit, had earlier appealed to the shareholders of Tata companies to help him remove Mistry in order to curb "disruptive influence".
He wrote: "The right step would have been for him to resign as director. Unfortunately, he has not yet done so and his continued presence as a director is a serious disruptive influence on these company boards, which can make the company dysfunctional, particularly given his open hostility towards the primary promoter, Tata Sons."
In response, Mistry wrote to the shareholders that Ratan Tata was "undermining" reforms within the Mumbai-based group.