New Delhi: Tata Motors has called an extraordinary general meeting (EGM) on 22 December to seek shareholders’ approval for removing Cyrus Mistry and Nusli Wadia as directors of the company.
Ousted from Tata Sons, Mistry continues as chairman of the group firms like Tata Motors and Tata Chemicals. Tata Sons, the company’s promoter with 26.51% stake, had asked Tata Motors on 10 November to convene an EGM for passing a resolution for removal of Mistry and Wadia as directors.
In a board meeting held on 14 November, independent directors of Tata Motors did not offer unanimous support to his leadership and instead backed all decisions taken by the company. In a filing to the BSE, Tata Motors informed that the company’s board, at its meeting held Wednesday, decided to convene an EGM “to consider and if thought fit, to pass an ordinary resolution for removal of C.P. Mistry and Nusli Wadia as directors of the company”.
The EGM will be held on 22 December in Mumbai.
In a sudden and dramatic turn of events last month, Mistry was unceremoniously removed as the chairman of Tata Sons and replaced by his predecessor Ratan Tata in the interim, triggering a confrontation between the single-largest shareholder and the Tatas.
Returning to Tata Sons after the abrupt removal of Mistry, Ratan Tata has moved quickly to consolidate his grip over the $103 billion salt-to-software group by seeking to remove the ousted chairman from boards of group firms.
TCS has called an EGM on 13 December, Indian Hotels Co Ltd has convened it on 20 December and Tata Chemicals on 23 December to seek Mistry’s ouster.
Even after being removed as chairman of Tata Sons - the holding company of the Tata Group, Mistry continues to head the group’s several listed firms including Tata Motors, Tata Power, Tata Steel and Tata Chemicals.
Mumbai-based Tata Motors is India’s largest automobile company, with consolidated revenues of Rs2,75,561 crore in 2015-16.