Tata Sons has won yet another round in the ongoing boardroom tussle, with the Bombay High Court denying interim relief to minority shareholders questioning the proposed ouster of independent director Nusli Wadia.
On Friday, the court permitted Tata Sons to go ahead with the extraordinary general meetings (EGMs) called by several Tata group entities for the removal of ousted Chairman Cyrus Mistry and Wadia as directors.
“The High Court has allowed the EGMs of all Tata companies to proceed without any intervention and as planned. Tata Sons’ votes will be counted and factored in as per the law,” a Tata Sons statement said. “The High Court, with the consent of parties, passed an order that one board seat amongst the maximum permissible directors as per the Articles of each company, should remain unfulfilled until the resolution of this suit,” it added.
On Wednesday, minority investors had moved the High Court seeking a direction to the promoters — Tata Sons and Tata Trusts — to abstain from voting on the resolution to remove independent director Nusli Wadia from the boards of Tata Steel, Tata Motors and Tata Chemicals.
The suit by Janak Mathuradas, Yogesh Mathuradas, Chanda Mathuradas and Pramila Mathuradas, minority shareholders of Tata Chemicals, Tata Motors and Tata Steel, sought to prevent the promoters, Tata Sons, from voting at the upcoming EGMs.
In the writ petition, the investors said Wadia was being removed from the board as he acted against the promoters to protect the interests of minority shareholders.
Tata Sons, in its notice dated November 10, had sought Wadia’s removal, accusing him of acting in concert with Mistry against the interest of the group.
Wadia had filed a defamation suit against Tata Sons seeking ₹3,000 crore in damages, which is yet to come up for hearing.