The move to remove Mistry from the board according to sources is to ensure confidentiality of board decisions.
Mumbai: After abruptly removing Cyrus Mistry as the chairman of Tata Sons in October, the company has now convened an extraordinary general meeting (EGM) of its shareholders to remove him as a director for allegedly leaking confidential information to the public and damaging the reputation of the entire group.
Confirming the development, a Tata group spokesperson said that an EGM has been called on February 6 based on the requisition by a few shareholders of Tata Sons to remove Mr Mistry from the board. The move to remove Mr Mistry from the board according to sources is to ensure confidentiality of board decisions.
“Subsequent to his replacement, Mr Mistry has made certain unsubstantiated allegations, which cast aspersions not only on Tata Sons Limited and its board of directors, but also on the Tata group as a whole. Internal communications, including confidential, were made public. Mr Mistry’s conduct has caused enormous harm to the Tata group and its stakeholders, including employees and shareholders,” PTI said quoting the extraordinary general meeting notice sent to shareholders.
According to the note, Mr Mistry’s conduct over the past few months resulted in significant erosion of the market value of the Tata group companies that has harmed the interest of Tata Sons Ltd and also caused indirect losses to its shareholders.
The mcap of listed Tata group firms plunged by $9.5 billion since the ouster of Mr Mistry as the chairman of Tata Sons that triggered a public spat between the Mistry camp and those supporting Tata Sons with a slew of allegations and counter allegations about violation of corporate governance norms in Tata firms.