Tata Sons, which owns 74 per cent stake in Tata Consultancy Services (TCS), on Thursday announced that it is nominating Ishaat Hussain as the interim chairman of TCS in the place of Cyrus Mistry with immediate effect.
Hussain will be holding the office as a chairman until a new chairman is appointed in his place.
TCS said Tata Sons Ltd has also issued a special notice under Section 169 read with Section 115 of the Companies Act, 2013, for convening an extraordinary general meeting of shareholders to consider a resolution for the removal of Cyrus Mistry as the Director of the company.
This is the first time that there is news of Tata Sons moving to replace Mistry as the Chairman of a group company. However, expectedly, it will not be easy for Tata Sons to remove Mistry from other group companies like Tata Chemicals, Tata Steel and Tata Motors, where it holds very low stakes.
The independent directors of Indian Hotels have endorsed Mistry after he was ousted from Tata Sons in a dramatic move by former chairman Ratan Tata.
Hussain, who is a Chartered Accountant from England and Wales, has been associated with the Tata Group since 1983 after Indian Tube was merged with Tata Steel. He was appointed as the Public Interest Director of Bombay Stock Exchange Limited in 2006.
Hussain took over as Finance Director of Tata Sons Ltd in 2000. Prior to joining Tata Sons, he served as the Senior Vice-President and Executive Director – Finance in Tata Steel for almost 10 years.