Two family-owned firms of ousted Tata Sons chairman Cyrus Mistry have moved the National Company Law Tribunal with a fresh application for a waiver on a condition that required them to have 10 per cent equity shareholding in the Tata holding company. Cyrus Investment and Sterling Investment Corporation moved the tribunal against Tata Sons, seeking a supersession of its board, citing mismanagement and oppression of minority shareholders' rights. They also challenged the proposed removal of Mistry as Tata Sons director.
The petition was filed under the Companies Act and the companies, both shareholders of Tata Sons, that their equity share capital of over 18 per cent was more than the 10 per cent that the Companies Act required for such petitions to be filed. But from the first day, Tata Sons had been raising preliminary issues of maintainability. In its reply too, Tata Sons sought dismissal of the petition on grounds of maintainability. It said that the Mistry companies hold only 2.17% of total share capital of Tata Sons - less than the required one-tenth - and are not eligible under section 244 of the Companies Act to file the petition in the NCLT.
