Tata Chemicals Director Bhaskar Bhat resigns after independent directors back Mistry

After independent directors "unanimously" backed Cyrus Mistry as Chairman, Tata Chemicals Director Bhaskar Bhat has resigned from the company's board saying concerns raised by him were "totally ignored". "Bhaskar Bhat, non-executive, non-independent director, has resigned from the Board of the company w.e.f. November 10, 2016," Tata Chemicals said in a BSE filing.

In his resignation letter, Bhat said, "I have just read the statement put out by the independent directors on the BSE website. The contents as well as the spirit of the statement completely dilutes the views I expressed at the Board meeting today especially regarding the threat the company faces on account of loss of confidence of the promoter Tata Sons in the Chairman of Tata Chemicals."

He further said: "Several important issues of discomfort I expressed seem to have been totally ignored. I therefore hereby tender my resignation as Director of Tata Chemicals, with immediate effect."

On Thursday, independent directors of Tata Chemicals "unanimously" backed Mistry as its Chairman and affirmed their confidence in the management. This is the second group company after Indian Hotels where independent directors have come out in support of Mistry as Chairman.

In a regulatory filing, Tata Chemicals, in which Tata Sons has 19.35% stake, said its independent directors at a meeting on Friday recalled and reaffirmed their earlier assessment and evaluation carried out in 2015 and 2016 of the Chairman, the Board, and its functioning. 

Mistry, who is Chairman and non-independent, non- executive director of Tata Chemicals, was ousted as Chairman of Tata Sons last month but continues to chair the boards of several group firms. The company's 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.