Chandra re-appointment: Mistrys abstain from voting at Tata Sons EGM

The Mistry family, which owns 18.4 per cent stake in Tata Sons Private, abstained from voting on the re-appointment of group chairman, N Chandrasekaran and appointment of two directors, Vijay Singh and Leo Puri at the Tata Sons shareholders meeting held today.

Chandra, who drew a remuneration of Rs 91 crore in the fiscal year ending March 2021, was appointed for a second term beginning February this year by the Tata Sons board. The rest of the shareholders of Tata Sons, the holding company of Tata group, voted in favour of his re-appointment. The Tatas, who own a majority stake in Tata Sons, voted in favour of all the three resolutions put to vote today.

In addition to basic salary, and other perks, Tata Sons will pay Chandra, a commission on net profit of the company as determined by the board at the end of each financial year. Chandrasekaran is also entitled to a long term incentive plan based on certain performance criteria as laid down by the board and/or Committee, duly authorised in this behalf, the Tata Sons EGM notice said.

A Mistry family spokesperson declined to comment.

The Mistry family and the Tatas are fighting a bitter legal battle in the Supreme Court with Mistry’s review petition pending in the Supreme Court. The Mistry family had challenged the apex court’s decision of March 2021 which agreed with Tata Sons board to remove Cyrus Mistry as chairman in October 2016.

In February this year, the Supreme Court agreed to hear Mistry’s petition in an open court. The matter is currently pending at the Supreme Court.

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