The pitched corporate battle that began on October 24, 2016, with Cyrus Mistry being sacked as chairman of Tata Sons, continued on February 6, 2017 with his removal as a director on the board of the holding company of the conglomerate, in which his family holds an 18.4 percent stake. While Tata Sons may have been successful in removing all traces of Mistry from its headquarters at Bombay House, it may still be premature for them to claim victory, since a long-drawn legal battle is all but a given.
Mistry, 48, and his family’s investment firms that have moved court against Tata Sons, its directors, the Tata Trusts and their nominees, fought tooth and nail to obtain a stay on the extraordinary general meeting (EGM) of Tata Sons’ shareholders where a resolution seeking his removal was to be put to vote. The National Company Law Tribunal (NCLT), which is hearing the main petition alleging oppression of shareholders and mismanagement, refused to grant the stay.
The petitioners then moved the National Company Law Appellate Tribunal (NCLAT) in New Delhi, but to no avail. Consequently, the EGM went ahead on February 6 and, as expected, the shareholders of Tata Sons passed a resolution to remove Mistry as a director of the company.
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