Mumbai, December 22: The board of directors of Tata Steel on Wednesday night voted in favour of the removal of Nusli Wadia as an Independent Director. The resolution, where 90.80 per cent members voted in favour to remove Nusli Wadia, took place in the Extraordinary General Meeting held on Wednesday, news agency ANI reported. And after immediate effect, Nusli Wadia was removed from the office of Director of Tata Steel Ltd.
On Thursday morning, the company had issued a statement to the stock exchanges making public the voting results of the Extraordinary General Meeting (EGM) held on Wednesday evening.
According to the company statement, out of total 62.55 crore votes, 56.79 crore votes were in favour of the removal of Nusli Wadia. Which means, 90.80 per cent shareholders supported the move.
Also, 100 per cent of the promoters’ voted removal of Nusli Wadia, which included institutional shareholders. Further, 84.47 per cent of the retail shareholders also supported the resolution.
The latest development comes in the backdrop of the ongoing legal battle and boardroom battle going on between Ratan Tata and Cyrus Mistry – who was recently sacked as the Chairman of Tata Sons.
After Nusli Wadia’s removal as an Independent Director puts a question on the corporate governance norms within the company and the Group.
The total number of votes polled against the proposal was 5.75 crore, accounting for 17.5 per cent of non-promoters.
The company claimed that even if the promoter votes were excluded, the voting result showed an overwhelming majority (3/4th) in favour of the resolution.
Institutional investors held a total of 42.64 crore shares out of which 31.99 crore, which is 75 per cent, were polled. As much as 26.39 crores of institutional shares, which is 82.5 per cent, voted in favour of Wadia’s removal, Tata Steel said. The share of institutional shares which polled against the resolution was 5.60 crore, that is 17.5 per cent.
As for retail shareholders, the company said that out of a total of 24.02 crore shares, 96.14 lakh voted, with 81.21 lakh (84.4 per cent) in favour and 15 lakh (15.6 per cent) against.
(With inputs from PTI)