Tata Steel Moves One Step Closer To Removing Cyrus Mistry And Nusli Wadia From The Board
Tata Steel removes Cyrus Mistry as the chairman till the outcome of the EGM.
Tata Steel announced that the board has decided to convene an extraordinary general meeting (EGM) on December 21, seeking to pass a resolution for the removal of Cyrus Mistry and Nusli Wadia as the directors of the company.
Read: Tata Sons Wants Not Just Mistry, But Also Nusli Wadia To Be Shown The Door.
The EGM was convened following the majority stakeholder Tata Sons' special notice and requisition on November 10, Tata Steel said in a stock exchange filing.
The company has also removed Cyrus Mistry as the chairman of the board till the outcome of the EGM, it said in a separate stock exchange filing. Former SBI Chairman, OP Bhatt, who was already an independent director on the board has now been appointed as the interim-chairman.
Tata Steel is the third Tata Group company, to convene an EGM, with Tata Consultancy Services Ltd. scheduled to hold its EGM on December 13, and Indian Hotels Company Ltd. (IHCL) holding it on December 20.
Read: Tata Sons Seeks Indian Hotels Shareholders’ Nod To Remove Mistry.
On November 11, Tata Sons had sent notices to all Tata Group companies asking them to call EGMs seeking Mistry’s removal as the chairman.
Mistry Cries Foul, Again
Cyrus Mistry’s office issued a statement, soon after, accusing some board members who represent Tata Sons and an independent director of passing a resolution, removing him as the chairman just minutes before the meeting was convened.
We believe that this unprecedented erosion of core Tata Values, is seriously damaging Brand Tata. Each time one thinks the current standard of corporate governance in Tata Group listed companies under the leadership of the Interim Chairman cannot hit a newer low, one has been belied. Just minutes before a convened and pre-scheduled Board Meeting, a circular resolution replacing the Chairman for the meeting is said to have been initiated. Those involved are representatives of Tata Sons, those drawing large remuneration from other Tata Trustee-controlled companies, and an “independent” director, who is the wife of a newly-inducted Tata trustee, who is also recently nominated director of Tata Sons.Cyrus Mistry’s office.