New Delhi [India], September 21 (ANI): Soon after the National Company Law Appellate Tribunal (NCLAT) granted a waiver to the Mistry firms from minimum shareholding criteria and a liberty to approach Mumbai's NCLAT, a statement from the office of former chairperson of Tata Sons Ltd Cyrus P. Mistry welcomed the same, adding that the firms would continue to pursue highest standards of corporate governance and demand complete transparency of the group.
"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," the statement read.
"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.
The National Company Law Appellate Tribunal had on July 24 reserved its judgement on pleas filed by ousted Tata Sons Ltd Chairman Cyrus Mistry against the company.
One petition was related to the minimum share holding requirement for filing the case against Tata Sons and the other to alleged mismanagement and oppression of the minority shareholder.
Mistry had approached the appellate body after the Company Law Tribunal Board dismissed his original plea in March, as his two companies - Cyrus Investments Pvt. Ltd. and Sterling Investments Pvt. Ltd. - did not have the minimum 10 per cent shareholding required to file the petition.
Though the two firms hold 18.4 per cent of ordinary shares in Tata Sons, this comes down to 2.17 per cent after preference shares are taken into account.
In February, the shareholders at Tata Sons Ltd passed a motion against Mistry at a general meeting, which was approved by a clear majority, thereby facilitating his removal as a director of Tata Sons Ltd.
"The shareholders of Tata Sons Limited, at the extraordinary general meeting held today, passed, with the requisite majority, a resolution to remove Mr. Cyrus P. Mistry as a Director of Tata Sons Limited," read the official statement released by Tata Sons Ltd.
Mistry was sacked as the chairman of Tata Sons on October 24, 2016 after which he resigned from the board of the company. Thereafter, alleging mismanagement at the firm and oppression of minority shareholders, he dragged Tata Sons to the tribunal. (ANI)