The Tata-Mistry case involved the removal of Cyrus Mistry as chairman of Tata Sons, which was a matter governed by the provisions of the Companies Act, 2013. Here are some of the sections of the Companies Act that were relevant to the case:
1. Section 169: This section sets out the procedure for removing a director of a company. It requires a special resolution to be passed by the shareholders of the company, and it also sets out the notice period and the procedure for calling a meeting of shareholders.
2. Section 174: This section deals with the responsibilities and duties of directors. It requires directors to act in good faith and in the best interests of the company, and it also sets out their obligations to disclose any conflicts of interest that they may have.
3. Section 241: This section deals with the powers of the National Company Law Tribunal (NCLT) in relation to disputes between shareholders and companies. It allows for disputes to be referred to the NCLT for resolution, and it also sets out the procedures that the NCLT must follow in such cases.
4. Section 244: This section sets out the powers of the NCLT to pass orders in relation to disputes between shareholders and companies. It allows the NCLT to make any order it deems fit, including orders for the removal of directors, the appointment of new directors, or the winding up of the company.
Case Study:
The Tata-Mistry case refers to a corporate dispute between the Tata Group and its former chairman, Cyrus Mistry. In 2012, Cyrus Mistry was appointed as the chairman of Tata Sons, the holding company of the Tata Group. However, in October 2016, he was suddenly removed from his position, leading to a legal battle between the two parties.
Mistry claimed that he was unfairly removed from his position and that there were several wrongdoings within the Tata Group that were covered up. Tata Group, on the other hand, claimed that Mistry was not suitable for the role of chairman and that his removal was a result of poor performance.
The case went through various legal forums, including the National Company Law Tribunal and the National Company Law Appellate Tribunal, before finally reaching the Supreme Court of India. In December 2020, the Supreme Court ruled in favour of Tata Group and dismissed Mistry’s petition, stating that the removal of Mistry was a valid exercise of the power of the majority shareholders of Tata Sons.
In summary, the Tata-Mistry case was a high-profile corporate dispute that was centred around the removal of Cyrus Mistry as chairman of Tata Sons. The case was eventually resolved in favour of Tata Group.
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