Mumbai: Tata Steel shareholders have voted to remove Nusli Wadia from the company’s board with an overwhelming majority. Nine out of 10 shareholders who voted favoured the resolution to remove him. Overall, 64.4% of shareholders voted.
Wadia didn’t find much favour with both institutional and retail investors. About 82.5% of institutions voted to remove him as did 84.5% of retail investors.
Wadia was removed following a nearly six-hour extraordinary general meeting (EGM) held by the company on Wednesday to seek his removal.
The removal comes as a setback to Wadia, who through his representation to group company shareholders had spoken of lack of corporate governance and violation of insider trading norms by Tata Sons Ltd and trustees of Tata Trusts. He now faces a similar test in Tata Motors Ltd and Tata Chemicals Ltd.
When asked by reporters toward the end of Wednesday’s EGM on whether he was happy with the way retail investors had supported him, chairman of Tata Trusts Ratan Tata said, “Yes, I am.”
About 31% of Tata Steel is owned by Tata Sons. Many shareholders who supported the resolution to remove Wadia were also employees of Tata Steel, Jamshedpur.
The total number of votes polled by the promoter and promoter companies were 29.59 crore, while the total number of votes polled by non-promoter shareholders was 32.95 crore, the results show.