Mistry ousted from Tata Steel, hits back saying 'erosion of core Tata values damaging brand'

After increasing the boardroom battle and ousting Cyrus Mistry as chairman of Tata Steel, sources close to him have stated that the act is an "unprecedented erosion of core Tata Values, which is seriously damaging Brand Tata." reported ANI. 

The steel making arm of Tata Sons on Friday announced O P Bhatt, independent director of Tata Steel and ex-head of State Bank of India (SBI), as Mistry's replacement. "The board of directors through circular resolutions dated November 25, 2016 passed by majority consent, has decided to replace Cyrus P Mistry as chairman of the board with immediate effect and elected OP Bhatt, an independent director as the chairman of the board," it said in a regulatory filing.

Earlier on November 11, Tata Steel had stated that it had received a special notice from the promoter and principal shareholder to convene an Extraordinary General Meeting (EGM) to remove Cyrus Mistry and Nusli Wadia as its directors.

Sources close to Mistry hit back in his defence and stated that, "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." 

They further said that minutes before the pre-scheduled board meeting, a circular resolution replacing chairman for the meeting was initiated. The sources blamed 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 and was recently nominated director of Tata Sons."