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.
Business Today, NDTV Profit
The Tata Sons Board, which came together for an unscheduled meeting on Thursday evening, has finally selected a new Chairman for Tata Sons. Natarajan Chandrasekaran is the man to have been brought in for the job, filling Cyrus Mistry’s shoes. The appointment comes almost three months after Mistry was removed from the top job in what has become an extremely public and controversial decision, spawning multiple boardroom and courtroom battles.
But with Chandrasekaran’s appointment, it seems that the matter can now be laid to rest. The new top honcho has been the Chief Executive Officer and Managing Director of the ‘crown jewel’ of Tata Sons, Tata Consultancy Services since 2009 and has also served on the board of Tata Sons since October 2016. Under his leadership, TCS has become the largest private sector employer in India and the second largest among listed entities, behind Coal India. This has caused him to be described as one of the most successful professional CEOs in India.
‘Chandra’, as he is popularly known, also has international exposure and familiarity with global economic conditions. What certainly helped his case is that he is a ‘lifer’, beginning his career at Tata and rising through the ranks. This proves his loyalty and his capability has already been proven for all to see.
The decision however, did come as a surprise, with Tata insiders having placed their bets on Tata veteran Noel Tata. But the marathoner and classical music aficionado Chandrasekaran has won the race, beating out other probables like Ishaat Hussain, S Ramadorai. Chandrasekaran seemed overwhelmed by the opportunity and said that he hoped to “grow into the role over a period of time”.
Sources: 1] Times of India
2] Economic Times
90% of the shareholders of Tata Steel Limited unanimously voted to remove Nusli Wadia as the independent director from the board of companies with immediate effect. An ordinary resolution was passed at the Extra Ordinary General meeting (EGM) on Wednesday and was thrown open to public for voting.
Early on Thursday, the company declared the results and sent out a statement to the Stock Exchanges, publicizing details of the six-hour long EGM held on Wednesday. The statement revealed that 56.79 crore votes were in favour of Wadia and 5.7 crore against the motion. On reckoning it appears that 90.80 per cent shareholders supported the resolution.
Wadia who had addressed the group’s company shareholders had revealed to them his concerns about the lack of corporate governance and violation of insider trading norms by Tata Sons Ltd and trustees of Tata Trusts. As per reports Wadia stayed away from the EGM yesterday on the grounds of it being state-managed. Further, he also filed a Rs.3000-crore defamation suit against Ratan Tata, Tata Sons and a few other directors from the company.
All this comes amid Ratan Tata’s impending legal battle with Cyrus Mistry, who was removed as the chairman of Tata Sons in October.
SOURCES: THE HINDU, INDIAN EXPRESS
IMAGE SOURCE: Indranil Bhoumik/Mint