Tata Sons has forced Cyrus Mistry out from the Chairmanship of Tata Global Beverages, replacing him with loyalist Harish Bhat. The move was termed as illegal by Mistry’s office.
Two independent directors, Darius Pandole and Analjit Singh, opposed the ouster at the Board meeting on Tuesday.
However, according to a statement issued by Tata Global Beverages to exchanges, seven out of the 10 Directors present voted in favour of the resolution.
“After extensive deliberations ... the Board of Directors resolved to replace Mr. 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 favour of the resolution. The Board of Directors also appointed Mr 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 is 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 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 Mr 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 Mr Mistry was sought to be moved, it was ruled out by the Chairman since it was not on the agenda,” it added.
Mistry’s office said that the statement made to stock exchanges is therefore inaccurate and illegal.
The Tatas have already eased Mistry out as Chairman of TCS. While Tata Chemicals and Indian Hotels have backed Mistry, independent directors at Tata Steel and Tata Motors are divided.