Stating that having a Chairman on board with hostility to promoters is detrimental, Harish Bhat, the new Tata Global Chairman said that he will provide the management with all resources needed from Tata Sons to achieve plans. “As the chairman of TGBL, I will ensure that long-term strategic plans are executed”. In an interview with ET Now, he said “It is clear that Cyrus Mistry doesn’t enjoy the support of Tata Sons. 7 out of 10 board members voted to oust Mistry. The process followed to oust Mistry as Chairman of TGBL was completely ‘legal'”. “Circumstances have changed significantly over the last one month and the message that I want to send to the stakeholders is that – TGBL continues to have sound & robust long-term plan,” he added.
Tata Global Beverages, yesterday, named company veteran Harish Bhat as its new chairman. In a board meeting, 7 out of 10 Independent Directors voted in favour of ouster of Cyrus Mistry. “After extensive deliberations, and keeping in view the long term interest and alignment of all stakeholders and stability of the Company, 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,” said a statement issued by the company.
Bhat is believed to be a confidant of Ratan Tata, who was brought back from retirement as interim chairman of Tata Sons after Mistry was shown the door. Even after his removal as chairman of Tata Sons, Mistry continues to head several listed companies ranging from Tata Motors to Tata Steel and Tata Power. Tata Sons has asked Tata Motors, Tata Steel, Tata Chemicals and Indian Hotels Co Ltd (IHCL) to call extraordinary general meeting of shareholders to remove Mistry from the board.