The change in Tata Sons’ corporate structure will require to be cleared by a special resolution, needing at least 75% votes, NCLT approval. It has also sought to change the name of the company from Tata Sons Ltd to Tata Sons Pvt. Besides shareholders’ approval, the change in its status will also need an approval from the National Company Law Tribunal (NCLT). Commenting on the rationale behind the move, a Tata Sons spokesperson said, “Tata Sons as a private company was considered by the board to be in its best interest.”The Mistry family has objected to Tata Sons’s attempt to convert it into a private limited company. A letter from Cyrus Investments to the Tata Sons board said, “The proposal to convert Tata Sons from a public company to a private company constitutes yet another act of oppression of the minority shareholders of Tata Sons at the hands of the majority shareholders,” the newspaper reported.

Source: Mint September 15, 2017 03:56 UTC