'Mistry removal as TCS Chairman cloak & dagger move by Tatas'

Cyrus Mistry's removal as TCS Chairman in "haste" reflects "cloak and dagger" machinations that define "the angry strategy of the Ratan Tata camp", sources close to the ousted executive alleged today.

Claiming that little regard to due process of law has been shown in this move, sources close to Mistry said the appointment of Ishaat Hussain as interim chairman was done "without even a board resolution being passed".

"Cloak and dagger machinations with little regard to due process of law has come to define the angry strategy of the Ratan Tata camp," said a source.

The allegations come within hours of Tata Sons removing Mistry as Chairman of the Group's crown jewel, TCS.
 

Tata Sons, which holds 73.26 per cent stake in TCS, has called an extraordinary general meeting of shareholders "to consider a resolution for the removal of Cyrus P Mistry as Director of the company", the software firm said in a regulatory filing.

The sources in the Mistry camp said TCS has quoted Article 90 of Articles of Association while removing him.

"Article 90 only enables Tata Sons to nominate a Chairman. The board then has to appoint the person so nominated. Tata Sons had asked TCS yesterday (November 9) that it would like Mistry replaced by Hussain - it made a nomination," the source said.

Further, TCS had to then convene a board meeting to table the nomination at the board through either a meeting or via a circular resolution.

"Nothing of this nature was done. In pre-mediated haste, by a letter of the same date, TCS has directly gone on to announce that Mistry stands replaced," a source claimed.

Sources added that the hasty action appear to have been done at night as the stock exchange announcement came as early as 0800 HRS today.

Alluding to Mistry's replacement by Ratan Tata as Chairman of Tata Sons on October 24 as poor governance, sources said that till date no reasons have been forthcoming on the issue and "just vague statements about culture and trust deficit" have been made.

While sacking of Mistry from Tata Sons triggered a public spat between him and the conglomerate last month, his family continues to controls an 18.41 per cent stake in Tata Sons.

Even after his removal as Tata Sons Chairman, Mistry continues to be chair of some of the key listed group companies. These include Indian Hotels, Tata Motors and Tata Steel.