Tata Steel on Friday said its board has removed Cyrus Mistry as the steel giant’s chairman and appointed independent director O P Bhatt in his place.
Earlier on November 11, Tata Steel said its board took note of the leadership changes at Tata Sons and had received a special notice from the promoter and principal shareholder to convene an Extraordinary General Meeting (EGM) for removal of Cyrus Mistry and Nusli Wadia as its directors.
“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 O P Bhatt, an independent director as the chairman of the board,” it said in a regulatory filing.
Bhatt, former chairman of India’s largest commercial bank State Bank of India, will serve as chairman till outcome of the EGM, it added.
The firm said Bhatt has been appointed the chairman “keeping in mind principles of good corporate governance and to provide impartial leadership to the company in its preparation and conduct of the EGM”.
This decision was taken to also ensure stability to the company and in the larger interest of Tata Steel’s stakeholders, including but not limited to employees, trading partners, financial stakeholders and local community around its operations, it added.
Besides, in a separate filing, the company said its board has convened the EGM on December 21 for removal of Cyrus Mistry and Nusli Wadia as directors of the company.
The board at its meeting held on November 25, 2016, decided to convene an EGM pursuant to the Special Notice & Requisition dated November 10, 2016, received from Tata Sons. Tata Sons holds 29.75 per cent stake in the firm.