Cyber Monday Deal: Up to 60% off InvestingProCLAIM SALE

TCS votes to oust Cyrus Mistry as director

Published 13/12/2016, 19:57
© Reuters. Mistry, chairman of Tata Group, smiles during the TCS annual general meeting in Mumbai

NEW DELHI (Reuters) - Tata Consultancy Services Ltd (TCS) shareholders voted to remove Cyrus Mistry, the ousted chairman of Tata Sons[TATAS.UL], as a director, according to the results of an extraordinary general meeting on Tuesday.

About 93 percent of TCS shareholder who cast their vote were in favour of removing Mistry, TCS said in a regulatory filing.

His ouster comes as no surprise given Tata Sons majority stake in the company, about 73 percent as of September end, according to Thomson Reuters data. TCS, India's biggest technology services firm by sales, contributes the bulk of the group's revenue and profit.

About 43 percent of TCS's institutional holders who voted were against the removal of Mistry, according to the filing.

Interestingly, 78 percent of voting shareholders who were not promoters or institutional holders were against Mistry's ouster.

In a bitter boardroom coup in October, Mistry was ousted as the chairman of Tata Sons, the holding firm for the $100 billion steel-to-software conglomerate, and group patriarch Ratan Tata returned to the helm temporarily. A public power struggle has since ensued between the two sides.

Mistry, however, still sits on the boards of several group companies. Tata Sons has called shareholder meetings at these companies over the next few days to vote on his removal.

Indian Hotels Co Ltd, Tata Steel and Tata Motors will hold their shareholder meetings next week.

"The fight is a matter of principle rather than facing the foregone outcome (of this meeting)," Mistry said ahead of the TCS shareholder meet in an indication that he had expected to be ousted given Tata Sons' majority shareholding in TCS.

"The very future of TCS hinges on good governance and ethical practices. In the past several weeks, we have seen good governance being thrown to the wind in every sense of the term, replaced by whims, fancies and personal agenda," he said.

Since his ouster from Tata Sons, Mistry has attacked the group's corporate governance standards several times, saying that his efforts to establish stronger guidelines contributed to his removal.

© Reuters. Mistry, chairman of Tata Group, smiles during the TCS annual general meeting in Mumbai

"Whatever be the decibel level of the voice that would drown your vote, I call on you to vote with your conscience and send a signal that catalyses a larger discussion on governance reforms," Mistry said.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.