The decision has been taken to ensure stability to the company and in the larger interest of the shareholders, said the company.
Recently it has been reported that Cyrus Mistry has been removed as the chairman of Tata Steel Board. Board has decided to replace Cyrus Mistry and elect the independent director and former SBI head, O.P. Bhatt as the new chairman of the Tata Steel Group. Bhatt will act as an interim Chairman of the Tata Steel board until the outcome of the EGM.
Justifying the move, the company has touted this to be a decision taken to ensure stability to the company and in larger interest of the shareholders. OP Bhatt appointment provides an impartial leadership in preparation of the EGM, the company said further.
The board in its statement has said that it will convene an extraordinary general meeting (EGM) to remove Mistry and independent director Nusli Wadia from the board of directors. The meeting is expected to be held on December 21.
The past one month has been a roller coaster for the Tata Group as Mistry was removed as the chairman of the Tata Sons which was then taken over by Ratan Tata as the interim chairman. This further ignited an encounter between the single-largest stakeholders of the group and the Tatas. Mistry had made various allegations on Ratan Tata on charge of not contributing substantially towards the growth of companies like TCS and Jaguar Land Rover. The ex-Chairman had also made various front line allegations against Tatas and raised questions on the way Ratan Tata conducted the business.
Post his (Mistry’s) removal as the chairman of Tata Sons, the Ratan Tata-led management has been constantly trying to expel Mistry from other positions of the group assets.