Tata Sons has written to the board of Tata Motors seeking an extraordinary general meeting (EGM) to remove Cyrus Mistry and Nusli Wadia as directors.
According to a stock exchange notification by Tata Motors, the board received the special notice on Thursday. Tata Sons holds 26.51 per cent stake in the auto major.
“... the Company has received a Requisition and a Special Notice dated November 10, 2016 under Sections 100(2)(a) and 115 of the Companies Act, 2013 and the Rules thereunder (‘the Act’) from Tata Sons Limited - the Company’s promoter and shareholder representing 26.51% of the Company’s voting capital, for convening an Extraordinary General Meeting of the Company for considering and passing Resolutions for the removal of Mr. Cyrus P Mistry and Mr. Nusli N Wadia, Directors of the Company under Section 169 of the said Act,” said the stock exchange announcement.
This is the third instance of Tata Sons, the holding company of the $125 billion conglomerate, moving a special resolution to seek the ouster of Mr. Mistry from a group company's board. It earlier sought an EGM for Indian Hotels Company and TCS.
Interestingly, this is the first time that the Tatas have sought the removal of an independent director as well. Mr. Wadia is one among six independent directors on the board of Tata Motors.
