Nusli Wadia voted out of Tata Motors board but with a small victory
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Mumbai: Industrialist Nusli Wadia has been removed as a director from Tata Motors Ltd following an extraordinary general meeting (EGM) held on Thursday, where 71.20% of total votes supported a resolution for his removal.
This was the second of the three EGMs called seeking Wadia’s removal. On Wednesday, shareholders of Tata Steel Ltd supported a resolution to remove him and on Friday those of Tata Chemicals Ltd will vote on a similar resolution.
For Wadia, who has been highlighting so-called corporate governance lapses at promoter Tata Sons Ltd, it was a small victory as 60.6% of retail investors and 49.94% of institutional investors voted in his favour and against the resolution. This compares to more than 80% of both institutional and retail investors voting against Wadia at Tata Steel’s EGM.
Tata Sons had last week raised its stake in Tata Motors to 28.71% stake from 26.98% earlier by buying 50 million shares in a bulk deal at a 7% premium per share from previous day’s closing. The move was aimed at gaining an edge in the EGM, Mint reported.
At Thursday’s EGM, about 1,517 shareholder votes, or 71.20%, were in favour of the resolution seeking the removal of Wadia but a total of 1,037 shareholders, constituting 28.80% of votes, voted against the resolution. In all, 69.9% of total shareholders cast their votes on Thursday.
Wadia has this month filed a Rs3,000 crore defamation suit against Ratan Tata and the board of Tata Sons for posing allegations of working in concert with Cyrus Mistry, the ousted chairman of Tata Sons.