New Delhi, Sep 21 (IANS) The National Company Law Appellate Tribunal (NCLAT) on Thursday allowed the firms owned by former Tata Group Chairman Cyrus Mistry’s family to raise its complaint of mismanagement and oppression against Tata Sons after applying a waiver in this regard.
The two family firms of Mistry, Cyrus Investments and Sterling Investments, had levelled allegations of mismanagement and oppression of minority shareholder interests in Tata Sons.
“The ruling of the National Company Law Appellate Tribunal is a welcome vindication of what we have stood for and the values for which we are pursuing the petition against oppression and mismanagement of Tata Sons Ltd,” a statement from Cyrus Mistry’s office said.
“We will continue to pursue highest standards of corporate governance and demand complete transparency of the group for the benefit of all the millions of shareholders, and indeed, the employees of the Tata Group companies. These are proceedings to protect and reinforce the values for which the Founders of the Tata Group have given us the legacy that we should strive never to lose,” it added.
Through his firms, Mistry owns around 18 per cent of equity shares in Tata Sons. But in the form of equity and preference shares, he owns only 2.17 per cent of the total share capital.
The Companies Act mandates that a petitioner should hold at least one-tenth of the issued share capital of a company or represent 10 percent of the total number of members to file cases alleging mismanagement and oppression of minority shareholders.
Tata Sons spokesperson: “Tata Sons has taken note of the order of the NCLAT and will examine it. We strongly believe that the allegations made by the petitioners are without basis and incorrect. Tata Sons will continue to defend its position at all appropriate legal forums.”
On October 24, 2016 Mistry was ousted as Tata Sons chairman. Subsequently he was also removed as director on the holding company’s board on February 6, 2017.
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