Nusli Wadia skips Tata Motors EGM; shareholders spar over his ouster
Several retail shareholders who addressed Tata Motors' EGM convened to remove Nusli Wadia from the board today endorsed the resolution, while a few threatened to sue the Bombay Dyeing patriarch for terming the meetings "stage-managed"
Several retail shareholders who addressed Tata Motors' EGM convened to remove Nusli Wadia from the board today endorsed the resolution, while a few threatened to sue the Bombay Dyeing patriarch for terming the meetings "stage-managed".
The outcome of the voting at the extra-ordinary general meeting (EGM), called specifically to remove Wadia from the company's board as an independent director, is awaited. The EGM was attended by hundreds of shareholders and the whole 11-member board, barring Wadia, and was chaired by interim chairman Subodh Bhargava.
Ratan Tata sat among the shareholders through the entire proceedings of over 4 hours. Like yesterday's Tata Steel EGM, Wadia skipped today's meeting, but sent in a note to shareholders that was read in the beginning.
In a regulatory filing today, Tata Steel said Wadia has been removed from its board, with 90.8 per cent of shareholders present at yesterday's EGM voting in favour of his ouster.
Wadia has termed the move to remove him as "inappropriately and shamefully stage-managed" by the Tatas. "I have chosen not to attend the meeting as I understand that recent meetings held of other Tata companies have been inappropriately and shamefully stage-managed by the requisitionist (Tata Sons) controlling the entry into the
hall, as also in the selection and choice of speakers as never before seen in Indian corporate history," he wrote to Tata Motors shareholders.
In his introductory remarks, Ishaat Hussain, who is on the board of Tata Sons and also the interim chairman of TCS, said as against Wadia's claim that he was asked to join the board by the late JRD Tata whom Wadia has described as his mentor and godfather, he was handpicked by Rata Tata himself and has been on the board for the past 23 years.
Some shareholders said they wanted to sue Wadia for casting aspersions on the process. "We have to seriously think whether we should not be suing Wadia for doubting our integrity and credibility. What locus standi he has to question the Tatas and us when he has been silent all these 23 years and never raised a finger against any of the activities that the company did?" said a shareholder from Pune.
However, some shareholders opposed the resolution to sack Wadia and also Mistry's ouster, saying neither the board nor Ratan Tata have given any evidence against them.
Sign up for all the latest news, top galleries and trending videos from Mid-day.comSubscribe