Tata Sons made a fervent appeal to all stakeholders to bury the incidents of the past two months and move on.
“I want to make a person appeal that we need to bury this most unfortunate incident and get on with our lives” Ishaat Hussain, Director, Tata Sons said while speaking on behalf of Tata Sons at the Tata Chemicals Ltd Extraordinary General Meeting (EGM) which was convened for removal of Nusli Wadia as director.
“The trouble was not of our making, we were dragged into it. This has dislocated the rhythm of the company. We have to get it back and hopefully this will be a new beginning. We have had your support, we request your support and before you it is at your interest that we are here dear shareholders,” Mr. Hussain said referring to recent steps taken by Tata Sons to oust Tata Sons Chairman Cyrus Mistry and Mr. Wadia from group companies.
Mr. Hussain, a close confidant of Tata Sons Interim chairman Ratan Tata, said this in the presence of Mr Tata, his brother Noel Tata and other Tata veterans who attended the meeting.
It was the last of the EGMs called by Tata Sons to evict Mr. Mistry and Mr. Wadia who have been accused of working against the interest of the group and jeopardizing its future.
The motion to remove Mr Mistry was made null and void as he had resigned from group companies on Monday. So Tata Power Ltd has cancelled the EGM called on December 26.
So far seven Tata Group companies convened EGMs to remove Mr. Mistry and Mr. Wadia. While Mr. Wadia has been voted out from Tata Steel and Tata Motors, the result for Tata Chemicals was not declared yet.
Justifying the decision for removal of Mr Wadia, Mr Hussain said: “Mr. Wadia has been acting in concert with Mr. Mistry and he has been acting against the interest of the Group. Further he has been conducting himself as an interested party. It is Tata Sons views that Mr Wadia’s action may put the company and its future in jeopardy.”
Mr Wadia did not attend the meeting alleging that entry to the venue was restricted and the show was stage managed.
Dismissing Mr Wadia’s contention that only independent directors are the custodians of minority shareholders Mr Hussain said, “Under the law there is no difference between the fiduciary duty of an Independent Director and a non-Independent Director. In fact the Independent and non-Independent is purely an Indian construct. So all the Tata Sons directors are your custodians as well.”
Making an unscheduled speech at the end of the EGM, Mr. Tata said: “Over the last two months there has been a definite move to damage my personal reputation and the reputation of the Tata group. These days are very lonely because the newspapers are full of attacks, most of them unsubstantiated but nevertheless very painful.”
Mr. Tata who attended all the EGMs said he was moved emotionally and deeply touched by the warmth and the support shown to him by shareholders. Expressing his deepest gratitude for supporting Tata Sons’ resolutions he said: “It could have gone either way but your support has been overwhelming and remarkable. It has done more for my sense of goodwill today and this week than anything else that has happened.”
He said the group has been there for 150 years and it has been based on governance, fair play. “I think the truth will prevail, whatever the process may be, however painful it may be. The truth will prevail,” he said.
