Tata Steel on Friday removed Cyrus Mistry as the chairman of the organisation. Independent Director O P Bhat has been appointed in his place. The board has also decided to convene an extraordinary general meeting (EGM) to remove Mistry and independent director Nusli Wadia as directors on the board of the company. The EGM will be held on December 21.
In a sudden decision last month, Cyrus Mistry was sacked as the chairman of Tata Sons and replaced by Ratan Tata as the interim chairman. “The board of directors through circular resolutions dated November 25, 2016 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 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 December 21 for removal of Cyrus
Mistry and Nusli Wadia as directors of the company. The board at its meeting held on November 25, 2016, decided to convene an EGM pursuant to the Special Notice & Requisition dated November 10, 2016, received from Tata Sons.
Tata Sons holds 29.75 per cent stake in the firm.
(With inputs from PTI)