Tata Sons has appointed Ishaat Hussain as the interim Chairman of, Tata Consultancy Services (TCS) in place of Cyrus Mistry with immediate effect.
TCS, country’s biggest software services exporter, said that it has received a letter from Tata Sons nominating Hussain as the Chairman of the Board of Directors of the Company in place of Mistry.
"The Company has received a letter dated November 09, 2016 from Tata Sons Limited nominating Ishaat Hussain as the Chairman of the Board of Directors of the Company in place of Cyrus P. Mistry with immediate effect. In view of this, Mistry has ceased to be the Chairman of the Board of Directors of the Company and Hussain is the new Chairman of the Company,” the company said in a statement today.
Hussain will hold office as Chairman until a new chairman is appointed in his place.
“The Company has been further informed that Hussain shall hold office as Chairman of the Company until a new Chairman is appointed in his place,” the statement added.
“Tata Sons Limited has issued a special notice under Section 169 read with Section 115 of the Companies Act, 2013 and a requisition for convening an extraordinary general meeting of shareholders of the Company under Section 100(2) of the Companies Act, 2013 to consider a resolution for the removal of Cyrus P Mistry as Director of the Company," it further said.
Last month, Mistry was ousted as chairman of Tata Sons in a surprise move, and was replaced by Ratan Tata as interim Chairman.
Hussain had joined the Board of Tata Sons as an Executive Director on July 1, 1999, and held the post of Finance Director of Tata Sons Ltd. beginning July 28, 2000.
Prior to joining Tata Sons, he was the Senior Vice President and Executive Director – Finance in Tata Steel for almost 10 years.
Besides being on the board of Tata Sons Limited, Hussain is Chairman of Voltas Limited and Tata Sky Limited. He is also on the boards of several Tata Companies such as Tata Steel, Tata Industries, Tata Teleservices, Titan Industries Limited.
Meanwhile, Tata Sons, which holds a 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.
Besides, a similar shareholder meeting of Indian Hotels Company Ltd, where Tata Sons holds 28.01 per cent, has been called to seek removal of Mistry as director of the company.
While the ouster of Mistry triggered a public spat between him and Tata Sons, his family continues to controls an 18.41 percent stake in Tata Sons. Mistry, who was replaced by his predecessor Ratan Tata as interim Chairman of Tata Sons, continues to be the chair of some of the key listed group companies. These include Indian Hotels, Tata Motors and Tata Steel.
"... A requisition is received from Tata Sons, a shareholder of Indian Hotels Company Ltd, holding 28.01 per cent of the paid-up equity share capital of the company to convene an extra-ordinary general meeting of the shareholders of the company... To pass the resolution for removal of C P Mistry as Director of the company," the hospitality major said in a BSE filing.
Last week, IHCL had in a regulatory filing stated that independent directors had unanimously backed Mistry and supported his continuance as chairman of the company.
