Mistry has been replaced by Tata insider Harish Bhat who has spent his life working for the Tatas, and serving as Tata Global's MD and CEO from 2012 to 2014
After TCS, it's the turn of Tata Global Beverages. Cyrus Mistry, the sacked former chairman of Tata Sons, has been removed from Tata Global Beverages as its chairman even as the fight between Tata Sons and Mistry turned nastier with the latter heaping another set of charges of mismanagement against his mentor Ratan Tata.
The tea and beverages company credited with orchestrating Ratan Tata's maiden global acquisition of Tetley of UK, on Tuesday removed Mistry as its chairman with the majority of the board members voting for his removal.
Mistry has been replaced by Tata insider Harish Bhat who has spent his life working for the Tatas, and serving as Tata Global's MD and CEO from 2012 to 2014.
"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 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 statement issued to the stock exchanges by the company said.
Cyrus, who termed his removal illegal, claimed that he continues to be the chairman as no such agenda of his removal was taken up during the board meeting.
"When the proposal to remove 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 Mistry as Chairman and was concluded. The statement made to stock exchanges today is therefore inaccurate and illegal, and is a repeat of exactly the same illegal acts done by Tata Sons on October 24," Cyrus' office said in a statement to the media adding that Darius Pandole and Analjit Singh, two independent directors, opposed his removal.
Tata Sons replaced Mistry with Ratan Tata as its interim chairperson on October 24 following which he was remove from chairmanship of TCS while the Tata group holding company asked several of its group outfits to call shareholders'meetings to remove him.
Even as high drama was unfolding at the Tata Global Beverages, Mistry came out with a new set of allegations, some directed against Ratan Tata.
Cyrus claimed that while members of Group Executive Council set up by him drew remuneration only from Tata Sons, Ratan Tata and other members of the Group Corporate Centre set up during his tenure additionally took parallel commissions from operating group companies.
Cyrus claimed the management system followed under his GEC was a leaner and more transparent system "to ensure that those involved in running the group were remunerated only by the group's core investment company and not by the operating companies."
Cyrus also highlighted what he alleged Ratan Tata's questionable investments and losses arising thereof namely Nagarjuna refineries, joint venture with SASOL and Piaggio Aero.
"Tata Sons decided to exit Piaggio Aero at a commercial loss of Rs 1,150 crore. This was after the efforts of Bharat Vasani and Farokh Subedar who managed to recover Rs. 1,500 crore, overcoming the objections of Ratan Tata who in contrast favoured increasing investments in that company," Cyrus alleged.
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