Day after Tata Chemicals' independent directors affirmed their confidence in Cyrus Mistry, the Tata Sons has called for an extraordinary general meetings (EGMs) to seek Nusli Wadia's removal. According to reports, Tata Sons has alleged that Wadia was working in tandem with Mistry.
Wadia, who is chairman of Bombay Dyeing and Britannia Industries, has been an independent director on the boards of three Tata entities - Tata Motors, Tata Steel and Tata Chemicals.
The EGM of shareholders was called to remove Mistry from the boards of TCS and Indian Hotels Company Ltd. This is the third instance of Tata Sons moving a special resolution to seek the ouster of Mistry from a group company's board.
Earlier on Thursday, Wadia, among other independent directors of Tata Chemicals Ltd backed Mistry as chairman of the Tata Chemicals. The directors took into consideration evaluation of Mistry's performance for the past couple of years as their reason for backing him.
Cyrus Mistry was sacked as Tata Sons chairman by its board that included newly inducted independent directors TVS Group Chairman Venu Srinivasan, Bain Capital managing director Amit Chandra and Piramal Group chairman Ajay Piramal.
According to a stock exchange notification by Tata Motors, the board received the special notice on Thursday. "... the Company has received a Requisition and a Special Notice dated November 10, 2016 under Sections 100(2)(a) and 115 of the Companies Act, 2013 and the Rules thereunder ('the Act') from Tata Sons Limited - the Company's promoter and shareholder representing 26.51% of the Company's voting capital, for convening an Extraordinary General Meeting of the Company for considering and passing Resolutions for the removal of Mr. Cyrus P Mistry and Mr. Nusli N Wadia, Directors of the Company under Section 169 of the said Act," said the stock exchange announcement.