The dispute between the long-running Tata and the Mistry family has not subsided. Shapoorji Pallonji Group is the largest single minority shareholder in the Tata group.
Shapoorji Pallonji Group holds 18.37 per cent stake in Tata Sons, the holding company of the Tata group. The Shapoorji Pallonji Group, headed by the Mistry family, said in the Supreme Court that Tata Sons is not the legacy of a family that only a Tata can lead. The group said that Cyrus Mistry needed to be appointed as a director by the company board to end the harassment of minority stakeholders in Tata Sons.
Court gave example
The Supreme Court cited the example of politics and the conduct of companies on allegations of interference of trustees in the functioning of Tata Sons of Shapoorji Pallonji (SP) group. The apex court said whether the Chief Minister consulted his party colleagues before the cabinet meeting leads to ‘breach of freedom’. The SP group alleged that Tata Sons’ operations were interfered with by the stakeholder trustee directors while the work should be left to the board of directors.
A bench of Chief Justice SA Bobde and Justice AS Bopanna and Justice V Ramasubramanian said that, ‘takes up the case of a Chief Minister who deliberates with his party colleagues before a Cabinet meeting on what to do and what not to do.
Would you say that he lost his freedom. ‘ The apex court was hearing the appeals filed by Tata Sons and Cyrus Investments on the fifth day against the order of the National Company Law Appellate Tribunal (NCLAT).
Cyrus Mistry was restored
The NCLAT ordered Cyrus Mistry to be reinstated to the position of executive chairman of the $ 100 billion Tata group. To this, Senior Advocate CA Sundaram, appearing for the SP Group, said that discussions with party colleagues are a ‘demand for politics’ and political science is a different thing from corporate.
Sundaram said, ‘Everything happens in politics by majority. This is not so under company law. The bench said, ‘I don’t think it depends on the cabinet. Such matters also occur in politics, while the minority also have to be consulted.
Nidhi Malviya is fun loving girl. She writes at NoobFeeds about various topics related to Finance, Technology, Business etc.