Tata Power wants to retain Mistry as chairman, but not as director
MUMBAI: For the first time since October 24 when the leadership saga broke out at the Tata Group, a board meeting at the conglomerate passed off peacefully.
On Tuesday, the board of Tata Power decided to hold an extraordinary general meeting (EGM) on December 26 to take shareholder approval for the removal of ousted group chairman Cyrus Mistry as a director of the company.
While Tata Sons, the holding company of the $103-billion group did not comment on the issue, Tata Power said it initiated the mandatory process after receiving a special notice from Tata Sons to remove Mistry. The company requisitioned the EGM and convened the board meeting to decide on it.
Tata Sons holds 31.05% in Tata Power.
Incidentally, Mistry is also the chairman of Tata Power, but there was no move from directors to remove him as chairman of the company, as was done in the meeting last week at Tata Steel.
“Mistry chaired today’s (Tuesday’s) board meeting of Tata Power without any contest,” said people aware of the development.
Tata Power also approved the earnings for the quarter ended September 30, where the company’s profits grew 25.6% to ₹447.34 crore, from ₹356.16 crore last year. Total income, however, fell 12.8% to ₹2,200.36 crore, compared to ₹2,525.50 crore last year.
It was expected that Tata Sons will not initiate any process to remove Mistry as chairman of Tata Power on Tuesday as it does not have significant numbers and is also hopeful of independent directors not raking up the issue of support for Mistry.
At the board meetings of Indian Hotels and Tata Chemicals, independent directors had surprised Tata Sons by publicly endorsing Mistry’s leadership, which embarrassed the current Tata leadership and fuelled their efforts to remove him as director of group companies.
Tata Sons also sought to remove independent director Nusli Wadia on the ground that he acted in concert with Mistry, a charge Wadia has strongly contested.