Tata Steel dethrones Chairman Cyrus Mistry
Mumbai: Cyrus Mistry was removed as the Tata Steel chairman, said the board on Friday, adding that he has been replaced with independent director OP Bhatt.
Earlier, Tata Steel said on November 11 that its board had taken the leadership changes at Tata Sons into consideration and has received a special notice from the promoter and principal shareholder to call for an Extraordinary General Meeting (EGM) for expelling Cyrus Mistry and Nusli Wadia as its directors.
"The board of directors, through circular resolutions dated November 25, 2016 passed by majority consent, have decided to replace Cyrus P Mistry as board’s chairman with immediate effect and elected OP Bhatt, an independent director, as the chairman of the board," it said in a regulatory filing.
The board added that Bhatt, who is the former chairman of State Bank of India (SBI), will serve as chairman till outcome of the EGM.
The firm, backing its decision of Bhatt’s appointment, said that he has been elevated as the chairman keeping principles of good corporate governance in mind and to provide fair and neutral leadership to the company in its preparation and conduct of the EGM.
The decision was made to ensure stability to the company and in the larger interest of Tata Steel's stakeholders, such as employees, financial stakeholders, local community and trading partners around its operations, the firm added.
In a different filing, the firm revealed that its board has called for the EGM on December 21 for removal of Cyrus Mistry and Nusli Wadia as company's directors.
It is to tell you that Tata Sons owns 29.75 per cent stake in the firm.