Cyrus Mistry termed Tata Sons "an act of oppression of minority shareholders"

Mumbai, Sept 16: Tata Sons who, moved to become a private company has been opposed by its former Chairman Cyrus Mistry's family and they termed it an act of oppression of minority shareholders. Mistry's family holds 18.4 percent stake in Tata Sons through Cyrus Investments and Sterling Investments.

Cyrus Investments in a letter to Tata Sons has alleged that the proposal to convert Tata Sons from a public to a private company is mala fide.

Mistry has also said that "the present proposal is nothing but a device and design to equip the majority shareholders of Tata Sons with one more weapon to oppress the minority shareholders and to subvert the highest standards of good corporate governance."

"The contents of the AGM notice and explanatory statement — suggesting that the conversion of
Tata Sons from a public limited company to a private limited company was merely a formality — are misleading," the letter added.

Tata Sons were incorporated as a private limited company. With effect from May 1, 1975, the company became a deemed public company under the provisions of the Companies Act, 1956.

Finally, the Mistry ended and urged the withdrawal of the proposal, and added that it will oppose the proposed resolutions when they are put to vote.