Mumbai: Tata Sons Ltd is looking to change its status from a public limited company to a private limited one and has sought approval from its shareholders to amend its memorandum of association and articles of association for the same, the Business Standard reported on Friday, citing the holding firm’s notice to its shareholders ahead of the annual general meeting (AGM) scheduled for 21 September.
It has also sought to change the name of the company from Tata Sons Ltd to Tata Sons Pvt. Ltd, it added.
The change in Tata Sons’ corporate structure will require to be cleared by a special resolution, needing at least 75% votes. 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.
While two investment firms of the Shapoorji Pallonji family—Cyrus Investments and Sterling Investment—own 18.4%, Tata Trusts own 66% of the share capital of the company, while the remaining shares are held mostly by the Tata family, some group companies and a few individuals.