Ishaat Hussain has been appointed as Tata Consultancy Services chairman with immediate effect. He will replace Cyrus Mistry who was relieved as Chairman of conglomerate Tata Group last month in a sudden move. “Mistry has ceased to be the Chairman of the Board of directors of the company, and Hussain is the new Chairman of the company. The company has been further informed that Hussain shall hold office as Chairman of the company until a new Chairman is appointed,” the company said in a filing with the exchanges.
According to exchange data, Tata Sons owned 73.26 percent stake in Tata Consultancy Services as of September 30, according to exchange data. After Cyrus Mistry’s removal, his predecessor Ratan Tata was back at the helm as chairman after nearly four years. Cyrus Mistry after being sacked had written a letter to the group directors blaming the group 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 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. Removing Mistry as chairman from some of the companies, where Tata Sons is not a majority shareholder, might prove to be hard. Indian Hotels, owner of the Taj chain of hotels, was the first to hold a board meeting after Mistry’s ouster.