FURNISH PROOF OF ALLEGATIONS IN A WEEK: NCLT TELLS MISTRY

After a 90- minute debate, the National Company Law Tribunal on Thursday directed Cyrus Mis try to file a reply within a week on the alleged oppression of minority shareholders and mis management by Tat a Sons, its directors and Rat an Tat a, as claimed by the ousted chairman’ s family-controlled firms. The case was adjourned till January 31. Cyrus Investments and Sterling Investment Corporation had moved NC LT against Tat a Son son Tuesday.

Mutual funds have sided with Ratan Tata in his feud with Cyrus Mistry, ousted chairman of Tata Sons. Executives at five fund houses said they had voted in favour of resolutions proposed by Tata Sons. Fund houses like ICICI Prudential Mutual Fund, HDFC Mutual Fund, Birla Sun Life Mutual Fund, SBI Mutual Fund and Reliance Mutual Fund have sided with Ratan Tata.

Extraordinary general meetings were called by Tata Sons to vote on the resolution to remove Mistry and independent director Nusli Wadia from the boards of various group companies, including Tata Steel, Tata Motors and Tata Chemicals.

Mistry resigned from the boards of all listed Tata group companies earlier this week, but 90 per cent of the shareholders of Tata Steel supported the resolution to remove Wadia. Shareholders of Tata Motors and Tata Chemicals vote on resolutions to remove Wadia on Thursday and Friday.

Mutual funds are usually known to abstain from voting on contentious matters, however, this time they seem to have taken a stand.

"The industry has substantial exposure in the Tata group in equity as well as debt. These investments are not only made in the companies but also in the Tata philosophy. There was no question of abstaining from voting. We heard what both parties had to say, and decided to go with Ratan Tata," said an industry executive.

Fund managers said they did not have anything against Mistry and they would take up some of the corporate governance issues raised by him on a separate platform. “We will discuss the issues with the managements of respective Tata companies. We need assurances that all the decisions are being taken in the interest of all the shareholders,” said another executive.

Sources said in the upcoming extraordinary general meetings, too, mutual funds would follow a similar voting pattern.