Now Tata Teleservices Board removes Cyrus Mistry as director

As TCS, shareholders of Tata Teleservices united against ouster of Cyrus Mistry as a director of the telecom company.

Now, Mistry is not on board of Tata Industries, Tata Consultancy Services and Tata Teleservices.

Tata Teleservices said Mistry ceased to be a director and consequently chairman of the company with immediate effect. The ordinary resolution was passed unanimously.

The ouster of Mistry as director was expected. “Promoters Tata Sons and NTT Docomo own 36.17% and 26.5%, respectively, for a total of 62.67%.

“Tata Teleservices, like TCS, entails a supermajority ownership by the Tata Group currently under the control of Ratan Tata,” people close to Mistry told ET.

“Although Docomo representatives were present, the issue wasn't brought up in the EGM since the matter is sub judice,” Sivasankaran. Hidetada Hayashi and Katsuhiko Yamagata represent Docomo on the board told ET.

Docomo exited Tata Teleservices due to financial struggles started by the latter. When Docomo purchased its stake in Tata Tele in 2009 for about Rs 12,740 crore, the two sides had agreed that it would get a minimum of 50% of its investment if the Japanese company exited within five years. However, the Reserve Bank of India said the option was invalid and payment for Docomo's stake would have to be made at fair market value. The imbroglio then took a legal turn, with Docomo filing for international arbitration and winning an award of $1.17 billion.

Docomo has since moved a local court to implement the award. In order to show their bona fides, the Tatas deposited a sum of more than Rs 8,000 crore in court.