A big change was made last year when TATA himself made the decision to remove Cyrus Mistry from his much ranked position which led to many disputes among the stakeholders. In the extraordinary general meeting (EGM) that was held at the company headquarters on Monday, Cyrus Mistry was voted out of the position of being in the Board of Directors. It was the only position that he had held after he was removed from the Chairman position of the Tata group. The meeting was held for the sole purpose of one agenda-the removal of Cyrus as Director. Though Tata trusts and group companies that hold the controlling stake voted for the resolution, few among the family voted against it too. Among them were Ratan Tata’s brother Jimmy Tata, Piloo Minocher Tata (wife of a grandnephew of group founder Jamsetji Tata) and her children — Jimmy M Tata and Vera Farhad Choksey.
There are 11 board of directors as of now. Ratan Tata stepped down from the Board on February 20th and now there is room for admitting one more individual. Mistry himself voted against the resolution during the EGM.18.4% of the shares of Tata Sons is held by Mistry and his family which has finally come to an end in its representation in the Board. 66% of the Tata Sons is owned by charitable trusts. All the Tata entities stood together to support the resolution to remove Mistry from the Board of Directors. Ratan Tata heads the 66% that is owned by charitable trusts.The others who backed the resolution were Noel Tata (step-brother of Ratan and Jimmy Tata and brother-in-law of Cyrus Mistry) and his mother Simone Tata. Noel was seen as the next best contender for the position of Chairman after Mistry was removed. Even though Noel and his mother was not present at the EGM conducted on Monday they did voice out their vote on the resolution. The three Tata companies, JRD Tata Trust, Tata Education Trust, Tata Social Welfare Trust and R D Tata Trust is under dispute on the share that was held by the deceased Maharaja Virendra Singh Chauhan. Since the presence of the law that mentions that subsidiaries cannot vote on a resolution concerning their parent, the three Tat companies cannot decide on the matter.
Mistry’s family has no plans to sell their current share holdings. The firms that support Mistry has taken the decision to give a petition to quasi-judicial National Company Law Tribunal citing reasoning with the oppression given to the minor stakeholders of a company. The petition was dismissed and then later appealed before an appellate branch where it was refused. However the case is still going on in the Tribunal. After Nusli Wadia expressed his opinion on the resolution of removing Mistry, he was also removed from the Board even though he was an independent director in three Tata Firms.