Tata Steel said on Friday that it has removed Cyrus Mistry as chairman of the company and appointed O P Bhat, independent director, as the interim chairman till the EGM scheduled to be held on December 21 in Mumbai.
The decision was taken pursuant to a notice for the EGM given by Tata Sons Limited, promoter and principal shareholder of the company, with 29.75 percent stake.
"In view of the current situation i.e. the above Special Notice & Requisition received from Tata Sons Limited, the Board of Directors through circular resolutions dated November 25, 2016 passed by majority consent, has decided to replace Cyrus P Mistry as the Chairman of the Board with immediate effect and have elected O P Bhatt, an Independent Director as the Chairman of the Board," the company said in a regulatory filing to the Bombay Stock Exchange (BSE).
Bhatt joined Tata Steel as independent director in June 2013. He will hold the position till the company takes a decision on the issue at the extraordinary general meeting (EGM).
"Bhatt will serve as Chairman till the outcome of the Extraordinary General Meeting of the Company. The Board appointed the independent director as 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," it said.
At the EGM, the company proposes to remove both Cyrus Mistry and Nusli Wadia as directors of Tata Steel.
Tata Steel share price closed at Rs 407.70 on Friday, up 2.37 percent from its previouse close.
Indian Hotels Company Ltd. that owns the Taj group of hotels will be holding its EGM on December 20 to remove Cyrus Mistry as director. Tata Sons holds 28.01 percent stake in the company.