Ousted TCS director Cyrus Mistry vows to continue fight against Tatas

New Delhi: A day after he was ousted as the director of Tata Consultancy Services (TCS), Cyrus Mistry on Wednesday said a huge majority of non-promoter shareholders of the firm voted in his favour.

Over 70 percent of non-promoter TCS shareholders voted against resolution to remove me, a strong signal from minority shareholders, Mistry said.

Over 70% of non-promoter TCS shareholders voted against proposal to remove me, a strong signal from minority shareholders: Mistry.(filepic) pic.twitter.com/47xmcA43kn — Press Trust of India (@PTI_News) December 14, 2016

The voting in TCS is a strong signal from minority shareholders that the need for governance reform must not go unheeded, he added.

Cyrus also further stated that he will continue to work at various forums to be voice for change in Tata Group, its governance and protection of stakeholders' rights.

Will continue to work at various forums to be voice for change in Tata Group, its governance and protection of stakeholders' rights: Mistry. — Press Trust of India (@PTI_News) December 14, 2016

On Tuesday, Mistry was removed as director of Tata Group's crown jewel, Tata Consultancy Services (TCS) with 93.11 percent of shareholders present at the extra-ordinary general meeting voting for his ouster.

Of the 197.04 crore shares in TCS, 170.85 crore shares were polled at the EGM called to consider a special resolution moved by Tata Sons seeking removal of Mistry.

Of the shares voted, 93.11 percent voted for the resolution while 6.89 percent voted against, the company said.

The number of shares voted represented 86.71 percent of the total shareholding of TCS.

Tata Sons, which is the holding company of the USD 103 billion salt-to-software conglomerate, holds over 73 percent of TCS shares.

In a letter of thanks to the public shareholders of TCS, Mistry said: "I wish to remind all that polls at shareholder meetings are not a reflection for clamour for office or retribution for the breakdown in the rule of law in the Tata Group in recent weeks."

Stating that the outcome of TCS EGM was a foregone conclusion, he said: "Over 70 percent of non-promoter TCS shareholders either voted against the resolution to remove me or abstained. This meant nearly 20 percent of the total votes in TCS (the promoters hold 73 percent of the total vote)."

He further said: "A reported 78 percent of the votes cast by retail investors was against the resolution to remove me and nearly 43 percent of the votes cast by institutional investors were against the resolution to remove me."

The voting in TCS is therefore, a strong signal from minority shareholders that the need for governance reform must not go unheeded, he added.

According regulatory filing of the extraordinary general meeting (EGM) held yesterday, 86.71 percent of the 197.04 crore shares voted. Of the votes polled, 93.11 percent voted for his removal and 6.89 percent were against the resolution brought by the promoter, Tata Sons Ltd.

Out of the 8.78 crore retail shareholders, 1.55 crore voted on the resolution, 78 percent, or 1.21 crore of which voting against the resolution. But this vote against the resolution may have included Mistry's own votes as well.

According to the latest annual report of TCS, Mistry held 41.63 lakh shares or 0.21 percent shares of the company as on March 31, 2016. Considering he would have voted against the resolution brought by Tata Sons, less than half of the negative votes for the resolution may be his own.

His shareholding made up for 35 percent of the negative vote for the resolution. Interestingly, less than 18 percent of the 8.78 crore retail shareholders voted.

According to the regulatory filing, all of the 144.48 crore promoter-held shares, constituting 73.32 percent of the total shareholding, voted for the resolution to remove him.

Of the 43.79 crore institutional holding, 56.69 percent participated in the poll, with 14.25 crore favouring Mistry's removal and 10.55 crore being against the resolution.

 

With PTI Input