Tata Power EGM on December 26 to consider Cyrus Mistry’s ouster as director

Company directors do not seek his removal as chairman at the board meeting on Tuesday.

By: ENS Economic Bureau | Mumbai | Published:November 30, 2016 2:36 am
cyrus Mistry, Ratan Tata, Tata Power Extraordinary General Meeting, Tata Power EGM, Companies , Tata Power Company Limited , company information , tata board of directors, business news a statement from the Mistry camp said: “Mistry chaired today’s board meeting of Tata Power without any contest.” Independent directors of the company also did not issue a separate statement on the issue.

The board of Tata Power has decided to hold an extraordinary general meeting on December 26 to consider the removal of its chairman Cyrus Mistry as a director of the company. However, directors did not seek the removal of Mistry as chairman at the board meeting on Tuesday.

A statement from the Mistry camp said: “Mistry chaired today’s (Tuesday) board meeting of Tata Power without any contest.” Independent directors of the company also did not issue a separate statement on the issue.

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Apart from Mistry, the directors on the Tata Power board are: Homiar S Vachha, Nawshir H Mirza, Deepak M Satwalekar, Ashok K Basu, Pravin H Kutumbe, Sandhya S Kudtarkar, Anjali Bansal, Vibha Padalkar, Sanjay Bhandarkar, Anil Sardana (managing director and CEO), and Ashok S Sethi. Of these, Vachha, Mirza, Bansal, Satwalekar, Padalkar and Bhandarkar are independent directors.

In a statement to the stock exchanges, Tata Power said, “This has reference to the Special Notice and Requisition received by the company under Sections 100 (2) and 115 of the Companies Act, 2013 (the Act) and the Rules framed thereunder from Tata Sons Ltd — the company’s promoter and shareholder holding 31.05 per cent of the paid-up equity share capital of the company — requisitioning an extraordinary general meeting of the members for considering and passing a resolution for removal of Cyrus Mistry as director of the company under Section 169 of the Act.”

“Pursuant of this requisition, the board has decided to convene an EGM in Mumbai on December 26,” Tata Power said.

The board of Tata Steel had last week ousted Mistry as chairman of the company and brought in former State Bank of India chairman OP Bhatt as the interim chairman till the extraordinary general meeting on December 21. The EGM of Tata Steel will consider the removal of Mistry and Nusli Wadia as directors. Wadia had written three letters to the Tata Sons’ board responding to the notice issued to the board of directors of Tata Steel seeking his ouster as an independent director.

On November 10, Mistry was removed as TCS chairman by the board and Ishaat Hussain was appointed. TCS has convened an EGM on December 13 to consider the removal of Mistry as director of the company.

In Tata Global Beverage, Mistry, was replaced by the company’s former MD and CEO Harish Bhat, who is a non-executive director. Seven out of 10 directors voted for Mistry’s ouster, making Tata Global Beverages the first company board to vote against Mistry.

Mistry and independent director Wadia will contest the proposal to remove them from boards of Tata Steel and Tata Chemicals. The two companies in separate regulatory filings said their EGMs have been called next month to consider resolutions moved by their holding company, Tata Sons, seeking removal of Mistry and Wadia. In both cases, Mistry intends to make both, written and oral representation to the shareholders in respect of his removal, said the notices for the EGMs.

The two companies said they will circulate the written representation to the shareholders “if the time permits”. Tata Chemicals EGM has been called on December 23.