Comments
Proxy advisory firm SES has asked public shareholders to vote in favour of the removal of Cyrus Mistry as Director of Tata Consultancy Services, the country’s largest software firm. SES is the second proxy advisory to make this voting recommendation in a week.
TCS has called for an extraordinary general meeting of all shareholders on December 13.
On the ongoing boardroom battle between Tata Sons and its former Chairman Cyrus Mistry and its imapct on group companies, SES had concluded that “While Tata Sons (TSL) was legally right in removing Mistry, optically the decision did not appear to be justified. (But) the board of a company (that is, TCS) cannot sit and adjudicate on a matter that is extraneous to the company. A divided board is dangerous and will erode shareholder value. In the present case, what happened at TSL has nothing to do with TCS, as TSL is just a shareholder of TCS. The job of the board is not to get justice for Mistry at TSL.”
TCS, in which Tata Sons holds 73.26 per cent, is the first Tata company to hold an EGM for Mistry’s removal as director. His dismissal has been supported by TCS’ board, which has already appointed Ishaat Hussain as its new Chairperson, another Tata Sons’ representative.
On November 30, proxy firm IiAS had issued a similar voting recommendation to public shareholders saying, however, that its recommendation is “not an endorsement of Cyrus Mistry’s removal from the chairpersonship of Tata Sons.”
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.