This group is backing Cyrus Mistry, asks TCS’ shareholders to vote against his sacking

The feud between Tata Group and Cyrus Mistry has still not been settled and amidst the feud, global proxy advisory firm ISS has asked minority shareholders to vote against Mistry's removal as director of Tata Consultancy Services. ISS said that neither the company nor its majority owner Tata Sons had provided compelling reasons for his removal.

TCS is now planning on holding an extra-ordinary general body meeting on December 13 to vote Cyrus Mistry out of the board. Tata Sons had already ousted Mistry as chairman of India's largest IT firm, put group veteran Ishaat Hussain in his place.

"Neither Tata Sons as the proponent nor the board of TCS has provided unaffiliated shareholders - who may be primarily concerned with Mistry's impact at the company level rather than at the group level - with compelling evidence that the proposal to remove him will be beneficial for TCS, or that his continued presence on the board is expected to have a material negative effect on board governance or future performance,” the report said.

The report added that TCS had displayed relatively good performance over the last four years and that Mistry had operated on 'the basis of healthy distance from undue pressure.'

"While it doesn't follow that Mistry should necessarily be chairman of these companies, he seems to have balanced the power of the holding vs. the power of the operating companies' boards,” ISS said.