Tata Chemicals fixes EGM date to seek removal of Cyrus Mistry, Nusli Wadia
Latest News »
Mumbai: Tata Chemicals Ltd has fixed 23 December for an extraordinary general meeting (EGM) of shareholders to seek the removal of Cyrus P. Mistry as a director and Nusli Wadia as an independent director from its board, the company said in a filing to the stock exchanges on Monday. It is also proposing the names of Bhaskar Bhat and S. Padmanabhan to be made company directors at the EGM.
The EGM is being called following a request by Tata Sons Ltd, which holds a 19.35% stake in Tata Chemicals. Following the ouster of Mistry as chairman of the group on 24 October and his refusal to step down from operating companies, Tata Sons requisitioned all the seven group companies in which Mistry is a director to call for an EGM. These are Tata Consulting Services Ltd, Tata Motors Ltd, Tata Steel Ltd, Indian Hotels Co. Ltd, Tata Global Beverages Ltd and Tata Power Ltd. Each company will need at least a 51% vote by those present in the meeting and voting to ensure the resolution is passed in their favour.
Also read: How independent are independent directors?
On 10 November, independent directors of Tata Chemicals had backed Mistry as chairman of the board. The seven-member board of Tata Chemicals comprises four independent directors: Y.S.P. Thorat, Vibha Paul Rishi, Nusli Wadia and Nasser Munjee.
Following the move, Tata sought a shareholders’ resolution to remove Wadia, accusing him of acting against shareholders’ interest and siding with Mistry. Bhat had resigned from the board on 11 November to express unhappiness over the unanimous support extended to Mistry by the independent directors.
Tata Sons and Mistry have been locked in an intense fight for over a month. The EGM will play a decisive role in the end game of the tussle.