NCLAT hears Cyrus Mistry petition against Tata Sons
In the latest involving the legal tussle between Cyrus Mistry and the Tata Sons, the Shapoorji Pallonji group has called for at least one nominee seat in the Tata Sons board
According to a CNBC TV-18 report, the Mumbai bench National Company Law Tribunal (NCLAT) on Wednesday heard Cyrus Mistry’s petition charging Tata Sons with oppression and mismanagement.
The arguments made by Mistry’s counsel stated that the articles of association with the Tata Sons board, in particular, the Article 121, makes the Tata Sons’ board as a dummy board and gives all the powers to the Tata Trust.
The board also called for at least one nominee seat on the board of Tata Sons, as the company has an 18 percent shareholding and is completely unaware of the business proceedings of the Tata Group. The counsel also called for the greater transparency and an outlining for better corporate governance.
The company also called for striking down Articles of association of 121, 121 A and 75, as they are oppressive to the rights of minority shareholders.
On 24 October, Cyrus P Mistry was replaced by Ratan Tata as interim chairman, less than four years after he took the post. What followed was an increasingly bitter spat as Mistry alleged mismanagement and oppression, s arguably the most heated tussle in Tata’s long corporate history.