Sacking ousted Tata Sons Chairman Cyrus Mistry, Tata Global Beverages today 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.
“The Board of Directors also appointed Mr. Harish Bhat – a Non-Executive Director of the Company, as the Chairman of the Company,” it added. “Tata Global Beverages Limited has informed the Exchange that The Board of Directors of the Company considered the continuance of Mr. Cyrus P Mistry as Chairman of the Company at its Board Meeting held on November 15, 2016,” added the statement. Last week, Tata Consultancy Services (TCS) said Mistry, who was abruptly sacked as the chairman of Tata group’s holding company, has been removed and replaced by Ishaat Hussain in the interim. Tata Global Beverages Ltd (TGBL) said Harish Bhat, a non-executive director of the company, has been appointed chairman of 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.
The development comes a day after Tata Motors Board meeting was unable to reach a consensus over the issue. The meet was marked by intense arguments between the two groups. A statement issued by the company said that management has full support of Independent directors, which includes the chairman. Nusli Wadia’s attempt to propose Indian Hotels type resolution stopped as it was opposed by a few Independent Directors. It also said that Independent directors confirm that all decisions by Board were taken unanimously.