Cyrus Mistry replaced by Ishaat Hussain as TCS interim chairman
In yet another setback for Cyrus Mistry, Tata Sons nominated Ishaat Hussain as chairman of the Tata Consultancy Services board. This was decided on Wednesday when Tata Sons called for an extraordinary general meeting (EGM) to remove Mistry as chairman of TCS. Hussain will be replacing Mistry as chairman until a permanent appointment will be made to the board.
Hussain, a director of several Tata companies, including Tata Steel and air conditioning and engineering arm Voltas Ltd, currently serves as chairman of Voltas and satellite television provider Tata Sky.
TCS said it has received a letter dated November 09, 2016 from Tata Sons Limited nominating Ishaat Hussain as the Chairman of the Board of Directors of the Company in place of Cyrus P. Mistry with immediate effect. In view of this, Mistry has ceased to be the Chairman of the Board of Directors of the Company and Hussain is the new Chairman of the Company. The Company has been further informed that Hussain shall hold office as Chairman of the Company until a new Chairman is appointed in his place," said the statement. They have also informed Bombay Stock Exchange about Mistry’s removal.
TCS did not have to hold a board meeting to replace Mistry as Chairman because Article 90 of the company’s Articles of Association allows its majority shareholder to nominate a chairman and Tata Sons exercised its option.
This move by Tata Sons is the latest fire in the escalating war between the Tata Group and Mistry who was removed as Chairman of the group last month.