Tata Sons battle turn ugly: Cyrus Mistry sacked as chairman of Tata Global Beverages
Tata Sons divested Cyrus Mistry of the Chairmanship of Tata Global Beverages at a board meeting on Tuesday and replaced him with loyalist Harish Bhat. Two independent directors, Darius Pandole and Analjit Singh, opposed the ouster at the Board meeting. Mistry’s office described the move as ‘illegal’.
According to a statement issued by Tata Global Beverages to exchanges, seven out of the 10 Directors present voted in favour of the resolution to oust Mistry and replace him with Bhat.
“After extensive deliberations … the Board of Directors resolved to replace Cyrus P Mistry as Chairman of the Company, by majority vote, with 7 out of the 10 Directors present at the Board Meeting, voting in favor of the resolution. The Board of Directors also appointed Harish Bhat — a Non-Executive Director of the Company, as the Chairman of the Company,” Tata Global Beverages said in the statement.
Mistry’s office said that the developments at the board meeting of Tata Global Beverages Ltd are nothing but a repeat of the illegality by the Board of Directors of Tata Sons on October 24. “There was nothing on the agenda about the replacement of the Chairman just as there was nothing in the Tata Sons Board Agenda on October 24. The Tatas continue to demonstrate the lack of respect for due process of law that they have displayed,” Mistry’s office said.
“Harish Bhat, an employee of Tata Sons, proposed that S.K. Santhanakrishnan be made Chairman at the meeting. This proposal was ruled out since there was already a Chairman for the meeting, namely, Cyrus Mistry. When the proposal to remove Mistry was sought to be moved, it was ruled out by the Chairman since it was not on the agenda,” it added.
It said the statement made to stock exchanges was, therefore, inaccurate and illegal. The Tatas have already removed Mistry from the Chairmanship of TCS. While Tata Chemicals and Indian Hotels have backed Mistry, independent directors at Tata Steel and Tata Motors are divided.