The National Company Law Tribunal (NCLT) today dismissed Cyrus Mistry's plea against Tata Sons and others in which the former chairman of the company had alleged operatational mismanagement and oppression of minority shareholders.NCLT stated that it has found no merit in Mistry's complaint and said that Tata Sons' board is competent enough to oust him as he had spoken publicly against the board and its directors.NCLT also said that Ratan Tata's conduct was not prejudicial to the company.The family firms of Mistry — Cyrus Investments and Sterling Investments — pressed allegations of mismanagement and oppression of minority shareholder interests at Tata Sons. The two private firms own around 18.4% of the holding company. The legal battle followed an ugly public spat between Mistry and Tata Group after he was sacked on October 24, 2016 after being on the helm for 4 years. The board said that they lost confidence in Mistry. The petition, filed by Mistry in December 2016, alleged breakdown of governance, poor business decisions at Tata Sons due to intervention by Tata Trusts chairman Ratan Tata and Tata Trustee NA Soonawala in the working of Tata Group’s operating companies.Mistry's another contention was that Tata Sons' Articles of Association are biased against the rights of minority shareholders. The amendments made in the Articles of Association after he was sacked, he alleged, restricts his firms right to freely sell shares in the market. He demanded proportionate representation of Tata Sons board, non-interference of Tata Trusts trustees in the affairs of Tata Sons and opposed the conversion of Tata Sons into private company.
from The Economic Times https://ift.tt/2ucUaAw
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