In a major escalation of boardroom brawl at the Tata Group, Cyrus Mistry was on Tuesday voted out as chairman by the board of the Tata Global Beverages, the second listed firm of USD 103-billion Group to remove him.
Seven out of 10 directors at the board meeting of Tata Global Beverages, the maker of Tata Tea and Coffee, voted for removal of Mistry as chairman of the company, TGBL said in a regulatory filing.
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.
Since taking over, the 78-year-old Tata has begun tightening his grip over the conglomerate.
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 board of directors of the company considered the continuance of Cyrus P Mistry as chairman of the company at its board meeting held on November 15, 2016," TGBL said in the regulatory filing.
"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 Cyrus P Mistry as chairman of the Company, by a majority vote, with 7 out of the 10 Directors present at the board meeting, voting in favour of the resolution."
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Mistry removed as TGBL chairman; calls move as 'illegal'
(Story Reissued With Fresh Inputs)1:More To Come(556 Words) Download Download PrintPrint 11/15/2016 8:05:00 PM
Mumbai, Nov 15 (PTI) In a major escalation of boardroom brawl at Tata Group, Cyrus Mistry was on Tuesday ousted as chairman of Tata Global Beverages by a majority vote by board members, a move that Mistry slammed as illegal and inaccurate representation of board proceedings.
Seven out of 10 directors at the board meeting of Tata Global Beverages Ltd (TGBL), which co-owns and runs Starbucks coffee stores across India, voted for removal of Mistry as chairman of the company, the company said in a filing.
Mistry, however, will continue as a director of TGBL.
TGBL is the second listed company of the USD 103 billion Tata Group that has removed Mistry as chairman since the October 24 decision of the holding company, Tata Sons, to remove him as the head.
Last week, Tata Consultancy Services (TCS) removed Mistry as chairman but that ouster was not through a vote but by virtue of Tata Sons holding a commanding 73.26 per cent stake in the India's largest software services firm.
"The developments at the board meeting of the Tata Global Beverages Ltd is nothing but a repeat of the illegality that the Board of Directors of Tata Sons Ltd did on October 24," Mistry said in a statement issued by his office.
It claimed there was nothing on the agenda of the Board, a meeting of which was called to approve second quarter earnings, "about replacement of the Chairman just as there was nothing in the Tata Sons Board Agenda on October 24," it said.
Two out of the six independent directors on TGBL -- Darius Pandole and Analjit Singh -- voted against the resolution moved for Mistry's ouster. Ireena Vittal is believed to have abstained.
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.
In the statement, Mistry said Tatas continue to demonstrate the lack of respect for due process of law.
"Harish Bhat, an employee of Tata Sons proposed that Mr S K Santhanakrishnan be made Chairman at the meeting. This proposal was ruled out since there was already a Chairman for the meeting, namely, Cyrus Mistry.
"When the proposal to remove Mr Mistry was sought to be moved, it was ruled out by the Chairman since it was not on the agenda. The meeting was conducted by Mr Mistry as Chairman and was concluded," the statement by Mistry's office said.
The TGBL statement to the stock exchanges "is therefore inaccurate and illegal and it is but a repeat of exactly the same illegal acts done by Tata Sons Ltd on October 24," it said.
It added that two independent directors Darius Pandole and Analjit Singh "opposed the bid at committing these illegal acts."
Since taking over, the 78-year-old Tata has begun tightening his grip over the conglomerate.
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.