Cyrus Mistry avoided a face-to-face confrontation on Thursday as he stayed away from the board meetings of Tata Consultancy Services (TCS) and Tata Sons. Mistry, who was earlier ousted as Chairman of both companies, continues to be a Director on the two boards.
While the Tata Sons board did not discuss anything related to the ongoing battle with Mistry, TCS has called for an Extraordinary General Meeting (EGM) on December 13 in Mumbai to pass a resolution for removal of Mistry as a Director.
TCS informed stock exchanges that “the Board of Directors of the Company, at its meeting held on November 17, 2016, has decided to convene an EGM ... to consider and if thought fit, to pass a resolution for removal of Mr. C. P. Mistry as Director of the Company,”
According to sources close to Tata Sons, there was no mention of Mistry at its board meeting, chaired by Ratan Tata. “The discussions were more about group businesses, current status and future course of action,” said the source.
Mistry no show Company insiders said that it was surprising Mistry did not attend as he would have had an opportunity to put his case before the board. “Mistry has been terming the decisions of Tata Sons and group companies illegal or legal depending on whether they were to his liking or not. He should have attended the meeting and clarified his position,” said a Tata Sons veteran.
Sources close to the Mistry camp, however, said that there was no point in him addressing the same board that had disregarded his views while unceremoniously ousting him from Chairmanship.
“TCS just announced the decision to remove Mistry on November 10 even without the decency of holding a board meeting. On the other hand Tata Sons’ board ousted him without going through the merits. Nothing would have changed if Mistry attended the meetings,” said a source close to Mistry, adding that legal action against Tata Sons could be taken soon.