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Tata Sons planning to convert into a private company; Mistry’s family opposes move

Tata Sons is the holding company of all major companies of the Tata group and now there are plans to convert Tata Sons into a private limited company. The company has informed all shareholders about the same and has requested their approval. The matter would be taken up during the company’s annual general meeting on September 21. If majority of shareholders agree, the plan to convert Tata Sons into a private company will be executed through an amendment made in the company’s articles of association. An amendment will also be made in the memorandum of association to change the name from Tata Sons Ltd. to Tata Sons Private Limited. The Tata Sons board has taken the decision to convert the company into a private limited company, as it feels that it will be in the best interests of the company.

Now only the shareholders’ approval is needed to execute the plan. However, it won’t be smooth sailing at the annual general meeting since one of the biggest shareholders has already said that it would vote against the proposal. Family of former chairman of Tata Sons, Cyrus Mistry, which holds 18.4 per cent stake in Tata Sons, had said that it will vote against the proposal. Cyrus Investments Pvt Ltd said that the plan to convert Tata Sons into a private company is an attempt to oppress minority shareholders and give all the power to majority shareholders.

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