Tata Steel board has gone ahead and removed Cyrus Mistry as chairman in a meeting held in Mumbai on Friday and replaced him with OB Bhatt. This is he latest development in the Tata boardroom drama which saw Ratan Tata lock horns with his Cyrus Mistry after Tata had handpicked Mistry to be his successor at the helm of Tata Sons. Six directors supported the resolution to remove Mistry while three directors opposed it. OP Bhatt will remain the interim chairman until Dec 21 extraordinary general meeting.
OP Bhatt is an independent director at Tata Steel. Another independent director Nusli Wadia opposed the move to remove Mistry. The board has also decided to remove Mistry and independent director Nusli Wadia, who backed him, as directors on the board of the company during the 21st December extraordinary general meeting. Mistry is the single-largest shareholder at Tata Sons. “The board appointed the independent director as the chairman, keeping in mind principles of good corporate governance and to provide impartial leadership to the company in its preparation and conduct of the EGM. This decision was taken to also ensure stability to the company and in the larger interest of Tata Steel’s stakeholders, including but not limited to employees, trading partners, financial stakeholders and local community around its operations. O P Bhatt was appointed as an independent director of the company on June 10, 2013. He has served as the chairman of State Bank of India, India’s largest commercial bank. He serves as an independent director on several board including Standard Chartered Bank, Tata Consultancy Services and Hindustan Unilever,” a Tata Steel statement to the stock exchanges said.
Mistry was unceremoniously removed as the chairman of Tata Sons last month and replaced by his predecessor Ratan Tata.
Tata Steel board on Mistry’s resolution: