TCS director Aman Mehta on Tuesday informed that Cyrus Mistry was removed from the post of TCS Chairman as he had lost the trust of the promoter group. Earlier today, TCS board was in unanimous agreement that Mistry removal in the best interest of the group. As a follow-up TCS EGM begins, Ishaat Hussain kick-starts meet. TCS director Aman Mehta said that all the board members expect Mistry were in support of his removal. Although, when the board invited the shareholders to ask any questions regarding the ouster of Mistry, they demanded elaborate reasons as to why Mistry was being sacked. One of the shareholders even asked of Ratan Tata only wanted ‘yes men’ around him. The 7th shareholder asked if it was fair for independent directors to remove the company’s director.
Meanwhile, Cyrus Mistry was reported missing from the meeting. Earlier, shareholders of one of Tata Group’s pivotal assets Tata Consultancy Services (TCS) voted on a resolution to remove Cyrus Mistry as the company’s director. Both Ratan Tata and Mistry have been trading charges over the recent weeks even as boards of numerous group companies have set in motion processes to remove Mistry from his post. Ahead of today’s meeting, shareholders have already been approached by both the groups and been asked to vote to keep the long-term well-being of the group in mind. TCS powers a major portion of the $100 billion Tata Group’s profits and as such it is the most significant part of the group.
Though Mistry was ousted as chairman of Tata Sons in October, he still remains on the board of some group assets and has not quit from the position. In fact, he has urged the shareholders in a letter asking them not to accept the proposal to remove hum from the boards. Ishaat Hussain was appointed as the new Chairman of TCS postMistry’s removal and Tata Sons today sought to pass a shareholder resolution for the removal of Mistry as the director on board for TCS.