Mumbai:Â 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, theÂ Business StandardÂ reported on Friday, citing the holding firmâ€™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 Sonsâ€™ corporate structure will require to be cleared by a special resolution, needing at least 75% votes. Besides shareholdersâ€™ 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, â€śTata Sons as a private company was considered by the board to be in its best interest.â€ť
The Mistry family has objected to Tata Sonsâ€™s attempt to convert it into a private limited company. A letter from Cyrus Investments to the Tata Sons board said, â€śThe 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,â€ť the newspaper reported.
While two investment firms of the Shapoorji Pallonji familyâ€”Cyrus Investments and Sterling Investmentâ€”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.