Will Tata oust Nusli Wadia for backing Cyrus Mistry?
After Cyrus Mistry, Tatas seem to be gunning for the removal of Wadia from the boards of three group companies.. Although a close friend of Ratan Tata, Nusli Wadia on Thursday had led the independent directors of Tata Chemicals in supporting Mistry’s right to remain the Chairman of Tata Chemicals. This was the second endorsement Mistry got in less than a week, after the Indian Hotels Company.
As senior independent director of Tata Chemicals, he backed Mistry to remain the company’s chairman, a TOI report said.
On Friday,Tata Sons sent notices to Tata Chemicals, Tata Steel and Tata Motors to remove the 72-year old Wadia from their boards. Wadia stuck to his guns and promptly sided with Mistry again at a stormy meeting of the Tata Steel board on Friday. The board of Tata Motors is set to meet on Monday.
Wadia, chairman of Bombay Dyeing and Britannia, has served as an independent director on the board of Tata Chemicals since 1981, on the Tata Steel board since August 1979 and Tata Motors since December 1998.
To remove Wadia, Tata Sons requires majority support from the shareholders of these companies.