Cyrus Mistry caused enormous harm to the company: TCS

The company made the regulatory filing to inform the BSE that an extra ordinary general meeting (EGM) will be held on December 13, 2016.

By: IANS | Mumbai | Published:November 21, 2016 4:47 pm
cyrus mistry, tata sons, tcs, tata global beverages, starbucks, tcs cyrus mistry, tata sons cyrus mistry, tcs chairman, india news Ousted Tata chairman Cyrus Mistry. (File)

IT major Tata Consultancy Services Limited (TCSL) on Monday pointed out that Tata Sons’ ousted Chairman Cryus Mistry has caused enormous harm to the company and its shareholders. “Mistry’s conduct has caused enormous harm to the Tata group, TCSL and its stakeholders, including employees and shareholders,” the company said in a regulatory filing to the BSE.

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“Subsequent to his replacement as executive chairman of Tata Sons, Mistry has made certain unsubstantiated allegations, which cast aspersions not only on Tata Sons and its board of directors, but also on the Tata group as a whole, of which TCSL is an integral part,” the regulatory filing said under the “explanatory statement” note.

The company made the regulatory filing to inform the BSE that an extra ordinary general meeting (EGM) will be held on December 13, 2016.

On November 17, the board of directors of the IT major decided to convene an EGM to remove Mistry as a director of the company.

Earlier, TCS issued a special notice under Section 169 (read with Section 115) of the Companies Act, 2013, and made a requisition for an EGM of shareholders to consider Mistry’s removal as a director of TCS.

TCS has already replaced Mistry as its Chairman and appointed Ishaat Hussain as the new Chairman of the board of directors of the company with immediate effect.

“It may be noted that the board of directors of Tata Sons has lost confidence in Cyrus P. Mistry to lead Tata Sons for a combination of several factors,” the company’s regulatory filing elaborated.

“The Tata Sons’ board, in its collective wisdom, took the decision to replace
Mistry. The Board had felt that the removal of Mistry as Chairman was absolutely necessary for the future success of the Tata group.”

Tata Sons, the holding company of the Tata Group companies, removed Mistry, 48, as its Chairman last month and reinstated Ratan Tata in an interim capacity.

Tata Sons in an earlier statement has said that ousted Chairman should resign from all group companies and deplored the manner in which Mistry has sought the support of independent directors of Indian Hotels to continue as its Chairman.

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  1. A
    A
    Nov 21, 2016 at 11:16 pm
    How? Is this the quality of your outputs TCS, mind blowing!
    Reply
  2. R
    raj
    Nov 21, 2016 at 5:32 pm
    It would be better what damage he had created in specific to TCS instead of giving a blanket statement. We all know what had happened in the year 2014 there was a huge hue and cry from the employees and several had been sacked. Is it decision of Mistry or Chandra in either case the damage had happened. Those are known truths if there are any unknown we should be knowing them as well. Atleast know people should know what is happening
    Reply
  3. R
    Raman
    Nov 21, 2016 at 12:34 pm
    I have to agree with the premise of this article that Mr. Mistry did cause lot of damage to TATA b. My observation is not only of him but others as well in India including the political cl. People,in power must understand that you are serving at someone else's pleasure and that if you do not perform you should make way for others to follow you since the life of others is dependent on you as to how you are performing? If the senior Mr. Ratan Tata who managed the TATA name b is revered for so many years and with success is not heeded, who is Mr. Mistry to stay defiant? Other than the fact that he is a Irish citizen most Indians do not know enough about him or his claim to fame other than the fact that he is of parsi background and his ancestors are from Mumbai! He should have gone instead of resisting and stubborn about it. And those who support Mr. Mistry has some vested interest and some ax to grind in my judgement. Perform or go away should be the motto of India or else we are going to be a substandard country and cannot compete with the best. I am also including many academicians and the politicians as well. They should take nothing for granted and your's is not life time appointment.
    Reply