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Published: Sat, December 03, 2016
Economy | By Melissa Porter

No vendetta in motion to remove Nusli Wadia, Tatas say

No vendetta in motion to remove Nusli Wadia, Tatas say

Tata Sons, the holding company of the United States dollars 103 billion salt-to-software group, is seeking to remove Wadia from boards of Tata Steel, Tata Chemicals and Tata Motors for allegedly galvanising independent directors against the Tatas and acting in concert with estranged chairman Cyrus Mistry.

The EGM was convened after the majority shareholder, Tata Sons sent a special notice and requisition on November 22, Tata Power said in a stock exchange filing.

In a BSE filing, Tata Power informed that the board, at its meeting held today, chose to convene the EGM to consider the removal of Mistry from the board.

Meanwhile, Tata Group sources told ET the TGBL board meeting that ousted Mistry was a perfectly legal process.

Tata Power's parent Tata Sons had replaced Mistry as its chairman last month, triggering a corporate tussle between Mistry and Ratan Tata, who has returned from retirement as Tata Sons' interim chairman. Mistry, who was on October 24 abruptly removed as Chairman of Tata Sons, the holding company of the United States dollars 103 billion salt-to-software conglomerate, was on Friday voted out as Chairman of Tata Steel. However, directors did not seek the removal of Mistry as chairman at the board meeting on Tuesday.

It is likely Tata Power will also issue the circular resolution, which is opted when directors of a company to pass a resolution without having to meet.

He has also requested the Board of both the firms to "institute an independent investigation upon the allegations as set out in the special notice issued by Tata Sons dated November 10, 2016 or state otherwise on the allegations".

Tata Steel's EGM notice further said that the company, subject to the proviso of the said section and if the time permits it to do so, circulate written representation to shareholders.

The company hoped the defamation notice was not "an attempt to coerce our directors and officer not to perform their fiduciary obligations to Tata Sons Ltd and its stakeholders, when Tata Sons has made a decision to and issued the Special Notice".

Mistry's sudden and dramatic removal as the chairman of Tata Sons triggered a confrontation between the single-largest shareholder and the Tatas.

Despite being removed as chairman from these three firms, Mistry continues to be the head of Tata Power. "Thought no strategy n roadmap was reason #CyrusMistry was sacked!"

"If you fail to do so then please take notice that the company would initiate legal proceedings against you, both civil and criminal", it added.

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