New Delhi: Shareholders of Tata Motors have voted to remove independent director Nusli Wadia from the board of directors.
In the extraordinary general meeting of shareholders held yesterday, 71.20 per cent of the votes polled voted in favour of a resolution moved by promoter Tata Sons seeking his removal, according a regulatory filing by the company.
Of the 293.60 crore shareholders, 69.93 percent took part in the voting, of which 70.20 percent voted for Wadia's removal and 28.8 percent against.
Ratan Tata sat among the shareholders through the entire proceedings of over 4 hours.
Like Wednesday's Tata Steel EGM, Wadia skipped Thursday's meeting, but sent in a note to shareholders that was read in the beginning.
On Wednesday, Wadia was removed as independent director from the board of Tata Steel.
Wadia has termed the move to remove him as "inappropriately and shamefully stage-managed" by the Tatas. "I have chosen not to attend the meeting as I understand
that recent meetings held of other Tata companies have been inappropriately and shamefully stage-managed by the requisitionist (Tata Sons) controlling the entry into the hall, as also in the selection and choice of speakers as never before seen in Indian corporate history," he wrote to Tata Motors shareholders.
In his introductory remarks, Ishaat Hussain, who is on the board of Tata Sons and also the interim chairman of TCS, said as against Wadia's claim that he was asked to join the board by the late JRD Tata whom Wadia has described as his mentor and godfather, he was handpicked by Rata Tata himself and has been on the board for the past 23 years. Some shareholders said they wanted to sue Wadia for casting aspersions on the process.
"We have to seriously think whether we should not be suing Wadia for doubting our integrity and credibility. What locus standi he has to question the Tatas and us when he has been silent all these 23 years and never raised a finger against any of the activities that the company did?" said a shareholder from Pune.
However, some shareholders opposed the resolution to sack Wadia and also Mistry's ouster, saying neither the board nor Ratan Tata have given any evidence against them.
Last week, Wadia filed a Rs 3,000-crore defamation suit against Ratan Tata, Tata Sons and some of its directors. He flied the case in the Bombay High Court following the move by Tata Sons to remove him from the board of the three companies.
Wadia had denied allegations by Tata Sons that he was acting in concert with ousted chairman Cyrus Mistry. Besides, he has refuted claims that he was "galvanising" independent directors and mobilising opinion, forcing disruptions and issuing statements" which were contrary to the interest of the companies as "totally baseless and completely unsubstantiated".
Updated Date: Dec 23, 2016 13:00:04 IST