Tata Consultancy Services Ltd on Thursday informed the stock exchanges that it had appointed Ishaat Hussain its interim chairperson to replace ousted chief Cyrus Mistry, The Hindu reported. Tata Sons has issued a special notice calling for an extraordinary general meeting. Hussain is a trusted associate of Tata Sons’ interim chairperson Rata Tata, NDTV reported.
The group’s statement said, “The company has received a letter dated November 9 from Tata Sons Limited nominating Ishaat Hussain as the chairman of the board of directors of the company in place of Cyrus P Mistry with immediate effect. Hussain shall hold office as chairperson of the company until a new chairperson is appointed in his place.” Hussain joined the Board of Tata Sons as an executive director on July 1, 1999, according to his brief on the Tata Consultancy Services website.
Tata Sons holds 73.33% stake in the company. According to Section 115 of The Companies Act 2013,“... Notice of the intention to move such resolution shall be given to the company by such number of members holding not less than one per cent of total voting power...” The Hindu reported.
On October 24, the Tata board decided to push chairperson Cyrus Mistry out. The group had also filed caveats as a preventive measure, “fearing legal action” by Mistry, who became the chairman of the company in 2012. His family’s Shapoorji Pallonji Group owns around one-fifth of Tata Sons. In a letter to his employees, Ratan Tata had said the decision, which has thrown the $103-billion conglomerate into turmoil, was “absolutely necessary” for the group’s success.