Mumbai, Nov. 15: The tussle in the Tata group intensified today when the board of Tata Global Beverages (TGBL) replaced Cyrus Mistry as its chairman by a majority vote. However, Mistry strongly contested the removal, saying it was inaccurate and illegal.

Seven out of the 10 directors present at the board meeting of TGBL, which co-owns and runs Starbucks coffee stores across India, voted against Mistry.

TGBL is the second listed company after Tata Consultancy Services (TCS) to remove Mistry.

While the TGBL board removed Mistry by a majority vote, TCS eased him out from the chairman's post by virtue of Tata Sons holding a 73.26 per cent stake in India's largest software services company. The Articles of Association of TCS confers on Tata Sons the right to nominate a chairman as long as it holds at least 26 per cent of the paid-up equity share capital of the company.

Majority vote

TGBL has an 11-member board comprising Mistry, Harish Bhat, Darius Pandole (independent director), S. Santhanakrishnan, V. Leeladhar (independent director), Mallika Srinivasan (independent director), Analjit Singh (independent director), Ranjana Kumar (independent director), Ajoy K. Misra, managing director & CEO, L. Krishnakumar and Ireena Vittal (independent director). It is learnt that Vittal was not present today.

In a statement to bourses, TGBL said after extensive deliberations, and keeping in view the long-term interest and alignment of all stakeholders and the stability of the company, the board had sacked Mistry as chairman by a 7-3 vote.

The board has appointed Harish Bhat, a non-executive director, as the chairman of the company.

While the board meeting was held to discuss the second-quarter results of TGBL, sources said the item pertaining to Mistry's role as chairman was taken up as part of other agenda. Among the independent directors present, Analjit Singh and Darius Pandole supported Mistry, while the others voted to replace him.

TGBL is the fifth listed Tata company where Mistry's position has come up for discussion. Mistry, who was removed as Tata Sons chairman on October 24, got the backing of independent directors of Indian Hotels Company and Tata Chemicals to stay on as chairman.

While the independent directors of Tata Steel were split in their support for Mistry, the independent directors of Tata Motors, after a marathon board meeting yesterday, issued a statement supporting both Mistry and the company management.

Blasting the TGBL move, a statement from Mistry's office said the developments at the board meeting of TGBL is "nothing but a repeat of the illegality that the board of directors of Tata Sons did on October 24''.

There was nothing on the agenda about replacing the chairman just as there was nothing on the Tata Sons board agenda on October 24, it added.

"The Tatas continue to demonstrate the lack of respect for due process of law. Harish Bhat, an employee of Tata Sons, proposed that S.K. Santhanakrishnan be made chairman at the meeting. This proposal was ruled out since there was already a chairman for the meeting, namely, Cyrus Mistry. When the proposal to remove Mistry was sought to be moved, it was ruled out by the chairman since it was not on the agenda. The meeting was conducted by Mistry as chairman and was concluded. The statement made to stock exchanges today is, therefore, inaccurate and illegal and it is but a repeat of exactly the same illegal acts done by Tata Sons Ltd on October 24,'' Mistry said.