Tata Chemicals independent director Nusli Wadia was voted out from company’s board on Saturday with 75.67 per cent voting against him. This development is followed by his removal from Tata Steel and Tata Motors. Wadia was voted out from Tata Steel in a shareholders’ meeting held on Wednesday during which 90.8 per cent of those present voted against him.
According to a regulatory filing by Tata Chemicals, out of the total of 25.48 crore shares of the company, 14.91 crore shares were voted. Out of this, 11.28 crore were in favour of the resolution to remove him. The company said 3.62 crore votes, accounting for 24.33 per cent of votes polled, were against his removal. Tata Chemicals also said the shareholders have approved a resolution to appoint Bhaskar Bhat as a director of the company with 79.26 per cent of votes going in his favour.
It further said the shareholders have also approved the appointment of S Padmanabhan as director of the company with 89.29 per cent voting in favour of a resolution for his appointment.
Last week, he filed a Rs 3,000-crore defamation suit against Ratan Tata, Tata Sons and some of its directors. He filed the case in the Bombay High Court following the move by Tata Sons to remove him from the board of the three companies. “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 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 the Tata Steel shareholders.
“What is at stake is not whether I am removed or not, but the fate of the very institution of independent director that has been created in law and by Sebi to safeguard the interests of all stakeholders. If independent directors can be removed at the whim and fancy of a promoter, then their role will be reduced to that of ‘yes men’,” Wadia said in the letter. “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.
Tata Industries is witnessing a major reshuffle with the ouster of Cyrus Mistry and Nusli Wadia.