Nusli Wadia, along with three other independent directors, reposed their support and confidence in Cyrus Mistry as the chairman of Tata Chemicals.
“Independent Directors unanimously affirmed their confidence in the Board, its chairman and the management in the conduct of the company's business,” according to a filing by Tata Chemicals to the exchanges.
Mr. Mistry was sacked as the chairman of Tata Sons last month and Ratan Tata took over as the interim chief.
Reaffirm assessment “In view of the recent events and subsequent media reports which may cause speculation (and) which could impact the company both domestic and international, the independent directors met today[Thursday] to review the impact on the Company leading to the said events,” according to the statement.
The independent directors “recalled and reaffirmed their earlier assessment and evaluation carried out in the year 2015 and 2016 of the chairman, the Board, and its functioning. The independent directors referred to the minutes of the above meetings, the outcome of which was with the entire Board at that time.”
“The independent directors also considered the subsequent statement made by the Board of Directors in the Annual Report in which the Board recommended and sought the support (of all shareholders) for confirmation of Mr. Mistry’s re-appointment at the Annual General Meeting held on August 11, 2015 and noted that the same was approved by 97.64 per cent of the votes cast,” according to the statement.
The independent directors also clarified that all decisions that had been taken with regard to the operations and business of the company had been taken by the Board unanimously and executed by the chairman and management as per the directions of the Board.
“All the independent directors of Tata Chemicals including Mr. Wadia reposed full faith and confidence on Cyrus Mistry as chairman of Tata Chemicals. This is certainly a big blow to the Tatas,” said a source in the know of the development.
“The independent directors also wish to reassure all the stakeholders, management of the company and its subsidiaries wherever located of their full confidence and support,” according to the statement.
Legal battle A partner of a leading legal firm, involved in advising one of the Tata group firms said: “It’s unfortunate but the way things are going, it is slated to be a long-drawn battle between the Mistrys and the Tatas.” Besides Mr. Wadia, other independent directors who backed Mistry include, Nasser Munjee, Y.S.P. Thorat and Vibha Paul Rishi. Ms. Rishi had also backed Mr. Mistry in the Indian Hotels board meeting.
Tata Chemicals posted a flat growth in its net profit to Rs.293 crore for the quarter ended September 30 on a consolidated basis on revenue of Rs.3,496 crore.
