Wadia skips Tata Motors EGM; shareholders spar over his ouster

Several individual shareholders who addressed Tata Motors' EGM (extraordinary general meeting) convened to remove Nusli Wadia from the board on Thursday endorsed the resolution, while a few threatened to sue the Bombay Dyeing patriarch for terming the meetings “stage-managed”. The outcome of the voting is awaited.

The EGM was attended by hundreds of shareholders and the whole 11-member board, barring Wadia, and chaired by interim chairman Subodh Bhargava. Ratan Tata sat among the shareholders through the entire proceedings of over four hours.

Like Wednesday's Tata Steel EGM, Wadia skipped Thursday's meeting but sent in a note to shareholders that was read at the beginning.

In a regulatory filing, Tata Steel said Wadia had been removed from its board, with 90.8 per cent of shareholders present at Wednesday’s EGM voting in favour of his ouster.

Wadia has termed the move to remove him “inappropriately and shamefully stagemanaged” 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 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 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?” asked a shareholder from Pune.

However, some opposed the resolution to sack Wadia and also Mistry’s ouster, saying neither the board nor Ratan Tata have given any evidence against them.