NCLAT holds changing Tata Sons from public to pvt firm

The NCLAT on Wednesday quashed the conversion of Tata Sons – the principal holding company and promoter of Tata firms – into a private company from a public firm, terming it “illegal”.

The NCLAT, which ordered reinstatement of ousted Cyrus Mistry as Chairman of Tata Sons, in its order said action taken by the Registrar of Companies (RoC) to allow the firm to become a private company was against the provisions the Companies Act, 2013 and ‘prejudicial’ and ‘oppressive’ to the minority members and depositors’.

“The Company (Tata Sons) shall be recorded as ‘Public Company’. The RoC will make correction in its record showing the Company as ‘Public Company,” said the National Company Law Appellate Tribunal (NCLAT).