Tata Sons likely to become 'public company'
Mumbai : The Registrar of Companies (ROC) is analyzing the judgment by the National Company Law Appellate Tribunal (NCLAT) on Tata-Mistry dispute; it has been learned that they are likely to change the company's classification to 'public company' from 'private company'.
The NCLAT in its 172-page order reinstating Cyrus Mistry as executive chairman of Tata Sons has tagged the conversion of company into the private company as 'illegal'.
It mentioned that proper procedure for conversion was not followed by Tata Sons, additionally the permission of the National Company Law Tribunal was also not taken.
Top officials in the corporate affairs ministry - which oversees the RoC - said the requisite documents are being sourced.
Mistry’s legal team is believed to be in touch with RoC officials to ensure the change happens quickly. “We don’t see any reason why the RoC cannot make the change as fast as it did for Tata Sons,” said a member of Mistry’s team.
“The first task for the RoC would be to complete the conversion process and record Tata Sons as a ‘public company’. There is a view to not defy the order as that would amount to contempt,” said an official in the know. He sought anonymity.
“The four-week stay granted by the NCLAT is on Cyrus Mistry assuming the office of executive chairman of Tata Sons. There is no stay on the RoC part of the verdict. So, there is a possibility that Tata Sons may move the Supreme Court against the part of the NCLAT order that termed the change in classification by RoC as illegal. The RoC is closely monitoring the same,” official said.