Tata Motors has called an extraordinary general meeting (EGM) on December 22 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 per cent stake, had asked Tata Motors on November 10 to convene an EGM for passing a resolution for removal of Mistry and Wadia as directors.
In a board meeting held on November 14, 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 today, 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 December 22 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 USD 103 billion salt-to-software group by seeking to remove the ousted chairman from boards of group firms.
TCS has called an EGM on December 13, Indian Hotels Co Ltd has convened it on December 20 and Tata Chemicals on December 23 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 Rs 2,75,561 crore in 2015-16.