The Shapoorji Pallonji Group that holds an 18% share in Tata Sons will invoke a little-known clause under the Companies Act to move the Company Law Board against the removal of Cyrus Mistry as the chairman of the salt-to-software conglomerate.
Mistry is son of Shapoorji Pallonji Group chairman Pallonji Mistry. The construction behemoth is the second largest shareholder in Tata Sons where the Tata Trust led by new interim chairman Ratan Tata has the majority 66% share.
It has also constituted a selection committee to choose a replacement within four months. The selection committee comprises Ratan Tata, Venu Srinivasan, Amit Chandra, Ronen Sen and Lord Kumar Bhattacharyya.
Mistry was chosen as Tata's successor in November 2011 and was appointed Deputy Chairman of Tata Sons, whose board he had entered in 2006. He was made chairman on the basis of his representation from Shapoorji Palonji, the largest shareholder in Tata Sons.
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