Cyrus Mistry has been removed as the director of Tata Industries, a Tata Sons spokesperson said on Monday, commenting on a development that will further escalate a boardroom battle that erupted after Mistry’s sacking as head of the $103-billion business empire.
At an extraordinary general meeting, Mistry was removed from the unlisted Tata Industries by shareholders’ vote. Hence, he ceased to be the chairman of the company, sources said.
This move was likely to impact the voting at the December 13 extraordinary general meeting of software major and group jewel Tata Consultancy Services.
Tata Sons has called for the meetings to decide on the resolution for replacing Mistry as chairman or director of group companies since the former group chairman did not step down even after his unceremonious ouster.
Tata Sons said in October that it decided to replace Mistry as chairman, a shock announcement that stunned many. Ratan Tata, the patriarch of the salt-to-software conglomerate, took over as interim chairman while a company-appointed search panel was formed to find a replacement.
Ratan Tata later told shareholders that the continued presence of the ousted executive in respective boards is a serious “disruptive influence”, and can make companies “dysfunctional”. For his part, Mistry accused the veteran industrialist of being insecure about his “legacy”.
Source:- Hindustan Times.
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