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Tata Power has convened an extraordinary general meeting on December 26 to remove Cyrus P. Mistry as director of the company. The decision for the EGM was taken at the company’s board meeting on Tuesday.
The board’s decision followed a request from Tata Sons, which owns a 31.05 per cent stake in the company. Tuesday’s board meeting was chaired by Mistry without any contest either from the independent directors or from the company’s executive directors.
The company’s independent directors did not issue any separate statement reaffirming the leadership of Mistry as it was done by the independent directors of Indian Hotels, Tata Chemicals and Tata Motors. These companies came out with statements to affirm their confidence in their boards, chairman Mistry, and the managements in the conduct of the company’s business.
In Tata Steel’s board meeting, the independent directors were split in half to come out with a statement to support Mistry’s decisions, and did not make any statement.
Mistry was, however, ousted as chairman from the board of Tata Global Beverages (TGBL) after the board removed him from the position in the board meeting held on November 15. After Mistry termed TGBL board’s move as ‘illegal’, Tata Global initiated a circular resolution on November 25 among its directors “for abundant caution” to remove Mistry from the chairman’s post and appoint Harish Bhat in his place. Tata Consultancy Services (TCS) had earlier removed Mistry and appointed Ishaat Hussain as its interim chairman.
Since the ouster of Mistry as chairman of Tata Sons on October 24, Tata Power has lost ~3,083 crore of its market capitalisation. Its shares were trading at ~72 a share, down 13.6 per cent since Mistry was ousted and 78-year-old Ratan Tata was appointed as interim chairman of Tata Sons.
A legal battle is also in the offing with Nusli Wadia serving a legal notice to Tata Sons for defamation. In its special notice to remove Wadia from the boards of Tata Chemicals, Tata Motors and Tata Steel, Tata Sons had said Wadia was ‘galvanising’ other independent directors and working against the interests of the Tata Group. Wadia has sought proof from the Tatas on these allegations and is seeking legal recourse against the Tatas.
|Tata Power's top management|
|Cyrus P Mistry||Chairman|
|Sandhya S Kudtarkar||Director|
|Ashok S Sethi||Executive director & COO|
|Anil Sardana||Managing director & CEO|
|Pravin H Kutumbe||Nominee (LIC)|
|Homiar Sorabji Vachha||Independent director|
|Nawshir H Mirza||Independent director|
|Deepak M Satwalekar||Independent director|
|A K Basu||Independent director|
|Anjali Bansal||Independent director|
|Vibha Padalkar||Independent director|
|Sanjay Bhandarkar||Independent director|
|Compiled by BS Research Bureau|