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NOV 23 2016

Tata Sons asks Tata Power to call EGM; Tata Chem sets date

  • Economic Times, ET Bureau / Hyderabad
  • Created: Wed 23rd NOV 2016

Tata Sons asked Tata Power to call an extraordinary general meeting (EGM) of shareholders to consider removing Cyrus Mistry as director of the company, in a move to tighten its grip over the group, said Tata Power in a regulatory filing.

On the other hand, the board of Tata Chemicals, where such a request had previously been made by Tata Sons, fixed December 23 as the date for calling the EGM for removing Mistry and friend-turned-foe independent director Nusli Wadia as directors of the company.

Mistry is the chairman of Tata Chemicals.

The board of Tata Global Beverages, the Indian partner of Starbucks Coffee, last week voted him out as the chairman. But he continues to be on its board and other firms. He, however, can be removed only by a shareholder vote.

Tata Sons used its commanding 73.26 per cent stake in the group’s most successful company, Tata Consultancy Services (TCS), to remove Mistry as its chairman. An EGM has been called on December 13 to remove him as director, too. Indian Hotels (IHCL), the firm which runs the Taj Group of hotels, has called a meet on December 20 to consider Tata Sons’ proposal to remove Mistry as director of the company. Tata Sons holds 28.01 per cent of share capital of IHCL.

In a sudden and dramatic turn of events last month, Mistry was unceremoniously removed as the chairman of Tata Sons and replaced by his predecessor Ratan Tata in the interim, triggering a confrontation between the single-largest shareholder and the Tatas.

In a filing to the BSE, Tata Chemicals said the board, at its meeting held today, decided to convene an EGM “to consider and if thought fit, to pass an ordinary resolution for removal of CP Mistry and Nusli Wadia as directors of the company”.

It has also received two notices dated November 16 under Section 160 of the Companies Act, 2013 from Tata Sons, "signifying their intention to propose the candidatures of Bhaskar Bhat and S Padmanabhan to the office of director of the company at the ensuing EGM".

"Accordingly, the proposal for their appointment will also be included in the EGM Notice," it added. The EGM will be held on December 23 in Mumbai.

 

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