Tata Steel removes Cyrus Mistry, appoints OP Bhatt as interim chairman
Tata Steel on Friday said its board has removed Cyrus Mistry as the steel giant's chairman and appointed independent director OP Bhatt in his place
New Delhi: Tata Steel on Friday said its board has removed Cyrus Mistry as the steel giant's chairman and appointed independent director OP Bhatt in his place.
Earlier on 11 November, Tata Steel said its board took note of the leadership changes at Tata Sons and had received a special notice from the promoter and principal shareholder to convene an Extraordinary General Meeting (EGM) for removal of Cyrus Mistry and Nusli Wadia as its directors.
"The board of directors through circular resolutions dated 25 November passed by majority consent, has decided to replace Cyrus P Mistry as chairman of the board with immediate effect and elected O P Bhatt, an independent director as the chairman of the board," it said in a regulatory filing.
Bhatt, former chairman of India's largest commercial bank State Bank of India, will serve as chairman till the outcome of the EGM, it added.
The firm said Bhatt has been appointed the chairman "keeping in mind principles of good corporate governance and to provide impartial leadership to the company in its preparation and conduct of the EGM".
This decision was taken to also ensure stability to the company and in the larger interest of Tata Steel's stakeholders, including but not limited to employees, trading partners, financial stakeholders and local community around its operations, it added.
Besides, in a separate filing, the company said its board has convened the EGM on 21 December for removal of Cyrus Mistry and Nusli Wadia as directors of the company.
The board at its meeting held on 25 November decided to convene an EGM pursuant to the Special Notice & Requisition dated 10 November received from Tata Sons.
Tata Sons holds 29.75 percent stake in the firm.
In the messy exit of Cyrus Mistry as chairman of Tata Sons, it is still not clear why he had to leave through a boardroom coup rather than being given a graceful exit when his initial term ended
Mistry said Tatas are at an "inflection point" and there is a need to institutionalise processes to future-proof the business
Thankfully, there's one attribute that Mistry has which should be of immense help to him as Ratan Tata hands over the baton.