Tata Sons Ousts Cyrus Mistry As TCS Chairman, Looks To Force Him Out Of Group Companies
Tata Sons wants to remove Cyrus Mistry as director of TCS and Indian Hotels.
Just over two weeks after being ousted as the chairman of Tata Sons Ltd., Cyrus Mistry has been replaced as chairman of group company, Tata Consultancy Services Ltd. Moreover, Tata Sons has initiated steps to remove Mistry as director of TCS and Indian Hotels Company Ltd.
Mistry Ousted As TCS Chairman
Tata Sons nominated Ishaat Hussain to replace Mistry as chairman in the interim, TCS informed the exchanges.
Hussain has been the finance director of Tata Sons since 2000. Before that, he was the senior vice president and executive director of finance of another group company, Tata Steel Ltd., for almost 10 years, according to Tata Sons website.
Tata Sons, as majority shareholder, has also issued a notice for an extraordinary general meeting of TCS shareholders to consider the removal of Mistry as a director.
Indian Hotels Battle
Tata Group’s holding company has also called for Mistry to be dismissed as director of Indian Hotels. Tata Sons, which holds 28 percent stake in the company, has issued a notice for an extraordinary general meeting of shareholders, according to a statement to the exchanges.
The independent directors of Indian Hotels had expressed their full faith in Mistry’s leadership on November 4.
Mistry remains the chairman of numerous other group companies including Tata Motors Ltd. and Tata Steel Ltd.
Tata Sons fired Mistry as chairman and brought in Ratan Tata as interim chairman on October 24. A five-member search committee consisting of Ratan Tata, Venu Srinivasan, Amit Chandra, Ronen Sen and Lord Kumar Bhattacharyya, has been given four months to find a new chairman for the $100 billion conglomerate.