Tata Sons board evaluates roadmap to turn around loss-making companies
Tata Sons Chairman N Chandrasekaran and other top officials made a detailed presentation to the board members at the Bombay House group headquarters, here on Tuesday.
Tata Sons, the promoter of the USD 105 billion cars-to-software group, today won shareholders’ nod to convert itself into a private limited company, limiting in effect Cyrus Mistry family’s ability to sell their stake to outsiders.
All resolutions placed before the annual general meeting (AGM) of shareholders were passed with requisite majority, a Tata Sons source said.A resolution placed before the AGM pertained to changing the closely-held company’s registration to a private limited firm as opposed to a public one.
The Mistry family, which owns 18.4 per cent of Tata Sons, had called the move “oppression of the minority interests” and stated that it would vote against the proposal.
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Tata Trusts holds 66 per cent in Tata Sons.
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The voting pattern was not immediately known. At least 75 per cent of shareholders’ nod was required for the proposal to go through.
The move comes almost a year after Mistry was ousted as chairman of the Tata Group, triggering a bitter boardroom battle. N Chandrasekaran was appointed Chairman in January this year.
A public limited company allows shareholders to legally sell their stake to anyone. But a shareholder of a private limited firm cannot sell the shares to outside investors.
In a notice to its shareholders, Tata Sons’ board had sought approval through special resolutions to amend its article of associations to bring about the change.
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