Cyrus Mistry removed as TGBL chairman, calls move ‘illegal’

Tata Global Beverages said the board of directors has voted to remove Cyrus Mistry as chairman and appoint Tata veteran Harish Bhat in his place.

By: Express Web Desk | New Delhi | Updated: November 15, 2016 8:09 pm
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Reacting to the board of Tata Global Beverages removing him as chairman, Cyrus Mistry’s office on Tuesday said the move to remove him is a repeat of the illegality that Tata Sons Board did on October 24.  “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.

“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.”

Tata Global Beverages, which co-owns and runs Starbucks coffee stores across India, said on Tuesday the board of directors has voted to remove Cyrus Mistry as chairman and appoint Tata veteran Harish Bhat in his place. Seven out of 10 directors voted for Mistry’s ouster, making Tata Global Beverages the first company board to vote against Mistry, who was ousted as chairman of holding company Tata Sons last month.

Last week, Tata Consultancy Services (TCS) said Mistry, who was abruptly sacked as the chairman of Tata group’ 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, Tat 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.