1. Tata group crisis: Now, Bhaskar Bhatt resigns as independent director at Tata Chemicals

Tata group crisis: Now, Bhaskar Bhatt resigns as independent director at Tata Chemicals

After Cyrus Mistry’s removal, his predecessor Ratan Tata was back at the helm of the Tata Sons as chairman last month

By: | New Delhi | Updated: November 11, 2016 1:41 PM
His resignation came a day the conglomerate decided to continue Cyrus Mistry as chairman of the Tata arm. (Reuters) His resignation came a day the conglomerate decided to continue Cyrus Mistry as chairman of the Tata arm. (Reuters)

Bhaskar Bhatt, an independent director in Tata Chemicals has resigned from his post on Friday. On Thursday, issue of Cyrus Mistry’s resignation as Tata Chemical’s chairman was not raised by directors during the meeting. Same day Ishaat Hussain was given the charge as the chairman of Tata Consultancy by the Tata group, who replaced suspended Cyrus Mistry to the post.

In his resignation letter, Bhat said, “I have just read the statement put out by the independent directors on the BSE website. The contents as well as the spirit of the statement completely dilutes the views I expressed at the Board meeting today especially regarding the threat the company faces on account of loss of confidence of the promoter Tata Sons in the Chairman of Tata Chemicals.”

He further said: “Several important issues of discomfort I expressed seem to have been totally ignored. I therefore hereby tender my resignation as Director of Tata Chemicals, with immediate effect.”

After Cyrus Mistry’s removal, his predecessor Ratan Tata was back at the helm of the Tata Sons as chairman last month after nearly four years. Cyrus Mistry after being sacked had written a letter to the group directors blaming the company for failures in several fronts including Tata Nano. He had also rebutted reports of mishandling a dispute with Japan’s NTT DoCoMo and said that Ratan Tata new of all decisions regarding the telecom venture.

Hitting back at him, Ratan tata said that his removal was “absolutely necessary” for the future success of the company.“The decision to change the leadership of Tata Sons was a well-considered and serious one for its board members. This difficult decision, made after careful and thoughtful deliberation, is one the board believes was absolutely necessary for the future success of the Tata Group,” the interim chairman wrote to employees of $100 billion Group.

However, Cyrus Mistry found support from independent directors of Indian Hotels, who praised steps taken by Mistry in providing strategic direction and leadership to the company. Independent directors found the need to state their views to investors and the public. Independent Directors were confident in Mistry at the helm and the board expressed confidence in him as the Chairman.

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