Tata Sons removes Cyrus Mistry as TCS Chairman, replaces him with Ishaat Hussain

MUMBAI: Tata Consultancy Services told the Bombay Stock Exchange that it had received a notice from its parent Tata Sons nominating Ishaat Hussain as Chairman of the company, immediately replacing Cyrus Mistry.

“ In view of this, Mr. Mistry has ceased to be the Chairman of the Board of Directors of the Company and Mr. Hussain is the new Chairman of the Company. The Company has been further informed that Mr. Hussain shall hold office as Chairman of the Company until a new Chairman is appointed in his place,” the company said in a statement. TCS said the letter was sent yesterday.

Tata Sons has also issued a notice calling for an extraordinary general body meeting to remove Mistry as a director of the company. The EGM will have to be held in 45 days.

Read Also: Tata Sons issues 9-page letter bomb accusing Mistry

This is the first time that Tata Sons has moved to replace Mistry as the Chairman of a group company and they have started with the crown jewel. TCS’ dividends, together with that of Jaguar Land Rover, have been bankrolling for the rest of group. Tata Sons also holds a majority of the shares in TCS making it easier for them.

TCS did not have to hold a board meeting to replace Mistry as Chairman because Article 90 of the company’s Articles of Association allows its majority shareholder to nominate a chairman and Tata Sons exercised its option. The parent has a similar right in the case of Tata Power.

The is the latest in a series of steps in the escalating war between the Tata Group and Mistry, who was ignominiously removed as Chairman of the group last month.

Last week, the independent directors of Tata-firm Indian Hotels Company said they backed Mistry and expressed their full confidence in him, complicating the Tatas task of displacing him as the chairman of several company boards.