Family-owned retail shares voted for Cyrus Mistry

MUMBAI: Cyrus Mistry, along with his family and investment vehicles, own almost 94% of the retail shares that voted against his removal from the board of Tata Consultancy Services (TCS), according to people familiar with the voting pattern.

While Tata Sons, being a majority shareholder, easily won the bid to oust Mistry with a strong backing of 93% votes, a huge chunk of retail shareholders, about 78%, were seen backing Mistry, who claimed moral victory after results were made public.

He had previously made a plea to nonpromoter shareholders to “save the soul of Tata Group” by voting against his removal from board.


However, according to sources, of 1.21 crore retail shares that voted against Mistry’s removal, 1.14 crore have been owned by Mistry and associates.

About 35 lakh retail shares supported Tata’s bid to remove Mistry. Only 17% of retail shareholders voted their shares.

Sources said these 1.14 crore shares have been owned by Cyrus Mistry, father Pallonji Mistry, brother Shapoor Mistry, and his companies Shapoorji Pallonji and Co, Cyrus Investments Private and Sterling Investment Corp.

Email requesting comment from Cyrus Mistry on the development has not elicited a response. After results of TCS extraordinary general meeting were announced Mistry thanked the public shareholders of TCS on Tuesday, saying the outcome at TCS has only made his resolve to 'save' the heritage of the Tata Group, and he will continue to work on the need for governance reform.

TCS was the second company to remove Mistry after Tata Industries did so on Monday. On Wednesday Tata Teleservices became the third company to oust him as a director.