In a scathing letter to Tata Steel shareholders, Nusli Wadia alleged that institution of independent directors is at stake as they are being reduced to the role of a ‘yes man’. The industry veteran, who serves as the independent director of both Tata Sons and Tata Steels, said that he can’t be removed with an ordinary resolution. “I have served as Independent Director of Tata Steel for more than 37 years, can’t be removed with brute force via ordinary resolution,” he said in the letter. He also urged shareholders to evaluate his contribution to company for 37 years. He reiterated his claim that that extended support to British steel workers has become unaffordable.
“I have outlined events relating to various decisions of the board. Most important of all to Tata Steel investment in Corus and events that have led to the impairment of approximately Rs 35,000 crore and a capital employed in the region of Rs 75,000 crore in which it is highly unlikely that shareholders will ever see any return,” he said in the letter.
Earlier, Wadia filed a defamation case against the Tatas, seeking a damage of Rs 3,000 crore. The ousted industrialist, in a media statement, claimed that the reason behind his removal as the director was his independence of mind and action.
Wadia had claimed that the continued investments by Tata Chemicals in under-performing overseas business incurring substantial losses, specially in the UK, have led to destruction of shareholder value with net debt of the firm rising to Rs 8,695 crore in the last 10 years.