• Associate Sponsor

Mistry’s hostility towards Tata Sons led to his removal: Harish Bhat

Mistry, he said, no longer enjoys confidence or support of Tata Sons, which holds 35.27 per cent stake in TGBL.

By: PTI | New Delhi | Published: November 16, 2016 7:05 pm
Cyrus Mistry, Tata, Tata sons, ratan tata, Cyrus Mistry Tata, Tata news, Tata Group Ousted chairman of Tata Sons Cyrus Mistry

Cyrus Mistry’s “hostility” to primary promoters had led to his removal as chairman of Tata Global Beverages as it posed significant risk to the company’s future performance, said the new head Harish Bhat. He said a resolution seeking removal of Mistry was brought in a fully legal manner, is in compliance with the Companies Act and Mistry was voted out 7:3. “I proposed a resolution (seeking removal of Mistry) as I believed that TGBL is at significant risk from having a chairman who is in a position of hostility to major promoter company, that is Tata Sons,” Bhat told PTI, referring to yesterday’s board meeting of TGBL, Starbucks Corp’s Indian partner.

Mistry, he said, no longer enjoys confidence or support of Tata Sons, which holds 35.27 per cent stake in TGBL. “When you have hostile relationship between the chairman and the primary promoter, there are significant risks which are detrimental to all stakeholders, including minority shareholders,” he said.

The risks can be about use of Tata trademark, attracting and retaining talent, quality of partnership with partners and future performance and implementation of strategic plans, he said. “It can come from the rating that the company enjoys. The risks can arise from several such factors,” he said, adding that interest of all stakeholders of the company, including minority shareholders, calls for a “good alignment” between the chairman and the major promoter company.

At the yesterday’s board meeting, seven out of the ten directors present voted for Mistry’s removal, showing that he had lost support of the board, he said. Mistry had yesterday slammed the move as “a repeat of the illegality that the board of directors of Tata Sons Ltd did on October 24” when he was removed as chairman of the holding
company of the USD 103-billion Tata group. A statement issued by his office stated that there was nothing on the agenda of the TGBL 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”.

Asked about Mistry’s statement, Bhat said the resolution was “brought to the board in a fully legal manner.” The Company’s Act provides for bringing resolutions or proposal that are not on agenda, he said, adding that he
“respectably disagrees” with Mistry’s assertion. The board meeting, he said, was very much in progress when the resolution was brought in. “The board meeting was being chaired by Santhanakrishnan, who was elected to chair the meeting” for that session.

It was during this period that one of the directors proposed Bhat’s name as chairman, he said, adding due process
of law was followed in bringing the resolution.

For all the latest Business News, download Indian Express App

  1. G
    Nov 16, 2016 at 5:40 pm
    TATA does not follow the ISO standards or audits. That is good. TATA developed its own system. That is very good too. Not many corporates that have all the money but the courage can develop indigenous systems. That's all the positives.lt;br/gt;lt;br/gt;Now comes the negatives:lt;br/gt;lt;br/gt;But, like any other system in India, the TATA Business Excellency Model(TBEM) is a humbug. It was based on a some s' idea who started occupying the top management. Those notorious "king wishperers" were all appointed under pressure form central agencies. I know a TATA company that has a Manufacturing and an engineering services division. Manufacturing unit CEO was a "KICKED OUT-OF-HIS-STATE lickspittle cl" while the Engineering services CEO was his son-in-law. Neither of them know either manufacturing or engineering. Since they were asked to be appointed by central agency mamas and the backing of the same mamas, nobody could throw them out for their utter incompetency. Even the US company that had collaboration with the TATAs could not throw them out. In fact they enjo so much clout that they were appointed as CEOs in other Asian divisions of the foreign collaborator.lt;br/gt;lt;br/gt;The coup of Cyrus Mistry is by the same central agency backed lickspittle cl that has lt;br/gt;infested TATA group. Cyrus Mistry wanted to reform the group by getting rid of these parasites that have been sticking to and feeding on other hard workers. Such coups are secretly conve by those lickspittle cl to their central agency mamas. Mamas have all the secrets of Ratan and many other executives. (Remember Radia tapes). There is no other way for Ratan than to scrupulously acquiesce to central agency mamas. Rest you all know.lt;br/gt;lt;br/gt;Lastly, where ever there is a brahmin, there is a criminallt;br/gt;lt;br/gt;Where there is no criminal, a brahmin creates a criminallt;br/gt;lt;br/gt;Where there is empty space, a brahmin creates a criminal out of nothing. lt;br/gt;lt;br/gt;Even if you put a brahmin in the center of Sun, he has so much filth taught by illogical Manu, he will turn Sun into a criminal hot bed.lt;br/gt;lt;br/gt;So if you see a brahmin in any position, you know how he reached there.
    1. T
      Nov 19, 2016 at 5:22 pm
      Your racists mindset shows your thinking and how your mind works.Are all the Gorpade's the same. Do not open your mouth in wrong places for you will know the real truth especially against porki sypmathisers