Bhaskar Bhat, a non-independent and non-executive director on the board of Tata Chemicals, resigned after the company’s board meeting on Thursday, saying the board ignored several important issues of discomfort raised by him at the meeting.
“I have just read the statement put out by the independent Directors on the Bombay Stock Exchange website. The contents as well as the spirit of the statement completely dilute the views that I expressed at the Board meeting today, especially regarding the threat the company faces on account of loss of confidence of promoter Tata Sons in the chairman of Tata Chemicals Limited,” said Mr. Bhat in a letter addressed to Tata Chemicals chairman, Cyrus Mistry.
Mr. Bhat, a Tata loyalist, was appointed as chairman of Tata SIA Airlines Ltd. early this year. In his previous role as the managing director of Titan since 2002 and a founding member of the company, Mr. Bhat led it to become the largest watch manufacturer in India and the fifth largest in the world.
On Thursday, the independent directors unanimously supported Mr. Mistry’s chairmanship on Tata Chemicals board, making it the second group company after Indian Hotels, where independent directors came out in support of him as chairman.
Tata Sons is likely to ask its operating company to call for an Extraordinary General Meeting (EGM) to remove Mr. Mistry as a director from its board, said sources in the know of the development. Tata Sons has already sacked Mr. Mistry as chairman of TCS and demanded TCS and Indian Hotels to call an EGM of the shareholders for removal of Mr. Mistry as director.
Tata Chemicals' independent directors include Wadia Group chairman Nusli N Wadia, DCB Bank chairman Nasser Munjee, former NABARD chairman YSP Thorat and marketing professional Vibha Paul Rishi.
“I, therefore, hereby tender my resignation as Director of Tata Chemicals, with immediate effect. I have enjoyed being a Director on the Board and I thank you for the respect you have shown me,” said Mr. Bhat in his letter to Mr. Mistry.
Meanwhile, at an industry event on Thursday, Sebi chairman U K Sinha said the independent directors must keep the interests of public in mind while taking decisions.
