Mumbai: As an implication of NCLAT’s order converting Tata Sons back to a public limited company, the Mistry family is now completely free to sell or retain their minority shareholding as per their choice in the holding firm of the conglomerate.
After the Registrar of Companies (RoC) lists Tata Sons as a public limited company, the Mistry family would be able to sell or retain their minority shareholding in Tata Sons as per their choice.
According to sources, the family might exercise this option to off-load some of their stake to save their entity, Sterling Wilson.
The family owns over 18 per cent stake in Tata Sons.
On Wednesday, the tribunal, among other things, held the conversion of Tata Sons from a public company to private as illegal and asked the Registrar of Companies to again recognise the company as public.
The company had in 2017 decided to convert into a private company whereby the shareholders would not be able to trade their shares, which was vehemently opposed by Cyrus Mistry and his family who have over 18 per cent stake in Tata Sons.
A private limited company is a business entity that is held by private owners. This type of entity limits the owners’ liability to their ownership stake and restricts shareholders from freely trading shares.
This restricted the minority shareholders of Tata Sons like the Mistry family to off-load their stakes to buyers of their choice.
Further, the NCLAT on Wednesday restored Cyrus Mistry as the Executive Chairman of Tata Sons, three-years after he was ousted from the coveted position.
Giving its order on the matter, a two-judge bench headed by S.J. Mukhopadhaya said that the Mistry’s restoration order will be operational after four weeks and the Tata Group can appeal in the Supreme Court during this period.
Sources say that the judgement gives the family an option to sell their stake in Tata Sons to save Sterling Wilson Solar. The family is expected
