The Bombay high court in an interim order directed Tata Sons to keep one seat of an independent director “vacant until further orders” in each of its companies on Friday. The court was hearing the case between Tata Sons and industrialist Nusli Wadia who serves as independent director.
The directions were issued after a dispute between Wadia and Tata Sons. A special notice was issued by the latter seeking Wadia’s ouster as the independent director from three of its entities, Tata Chemicals, Tata Motors and Tata Steel.
Each of these three firms will conduct an extraordinary general meeting (EGM) to vote on Wadia’s ouster.
A defamation case was filed by Wadia against Tata Sons contending that he was being “singled out and targeted” because of supporting ex-chairperson of Tata Sons, Cyrus Mistry. Wadia said Tata Sons feared that he was “galvanizing” other directors to support Mistry.
Other four minority shareholders including Janak Mathuradas, Yogesh Mathuradas, Chanda Mathuradas and Pramila Mathuradas also moved the Bombay high court against the special notice on Wadia’s removal.
They challenged a rule in the Companies Act that let promoters to vote on a resolution seeking ouster of independent directors earlier this month.