Ahead of the annual general meeting scheduled for September 21, Tata Sons have proposed the idea of converting itself into a private limited firm from a public limited one. The plan has been suggested solely because the company feels that its status as the ‘deemed public company’ is not statutorily recognized under the Companies Act, 2013.
However, the Mistry family, who have been at loggerheads with the Tata’s from quite some time, have objected this move. A letter from Cyrus Investments said, ” The proposal to convert Tata Sons from a public company to a private company constitutes yet another act of oppression of the minority shareholders of Tata Sons at the hands of the majority shareholders.”
The Mistry family holds 18.4 percent stake in Tata Sons, while Tata Trusts holds 66 percent stake. Moreover, the disagreement by Mistry family has come after months of legal battle between the two groups following Cyrus Mistry’s removal as Chairman of salt-to-steel business.
Meanwhile, the special resolution will only be passed if 75 percent of the votes are in favor to bring about a change in Tata Sons’ corporate system.