Tata Global Is Second Group Company To Remove Mistry As Chairman After TCS

The board of Tata Global Beverages, a Tata group company that makes Tetley tea and Eight O’ Clock coffee, has removed Cyrus Mistry as its chairman in its meeting on Tuesday. With this, Tata Global has become the second operating company to remove Mistry as chairman after TCS following his dismissal from the chair of Tata Sons, the group holding company. Mistry will be replaced by Harish Bhat, a non-executive director of Tata Global.

"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 majority vote, with 7 out of the 10 Directors present at the Board Meeting, voting in favour of the resolution," a company statement to stock exchanges said on Tuesday.

Tata Global has six independent directors, including former Reserve Bank of India Deputy Governor V Leeladhar, TAFE Chairman Mallika Srinivasan, former McKinsey partner Ireena Vittal, Max India group Chairman Analjit Singh, former Nabard chairman Ranjana Kumar and New Silk Route partner Darius Pandole.

The Tata Sons board had sacked Mistry as chairman on October 24 citing the group’s long-term interest, nearly four years after putting him at the helm. Mistry, however, remains chair of several major Tata group companies and also a board member in Tata Sons, by virtue of his family's stake.

Mistry and his family own nearly 18.3 per cent of Tata Sons while about 65.2 per cent is held by the Tata Trusts. Last week, the group axed Mistry as chair of Tata Consultancy Services, where Tata Sons owns over 70 per cent stake. While other subsidiaries - Indian Hotels Company, Tata Steel, Tata Motors and Tata Chemicals have supported him they have also called a shareholder meeting at the behest of Tata Sons to vote on his removal as a director.

Meanwhile, a statement from Cyrus Mistry's Office said on Tuesday that the developments at the board meeting of the Tata Global Beverages was nothing but a repeat of the illegality that the Board of Directors of Tata Sons did on October 24.

"There was nothing on the agenda about replacement of the Chairman just as there was nothing in the Tata Sons Board Agenda on October 24," it said.

"The Tatas continue to demonstrate the lack of respect for due process of law that they have displayed. 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 made to stock exchanges today 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 and two independent directors Darius Pandole and Analjit Singh opposed the bid at committing these illegal acts," Mistry's Tuesday statement added.