Tata Chemicals EGM to consider removal of Cyrus Mistry, Nusli Wadia

Tata Chemicals  is looking to remove ex-chairman of Tata Sons Cyrus Mistry and Director Nusli Wadia from its board in an Extraordinary General Meeting (EGM) to be held on December 23, 2016.

Tata Sons' statement said, "Nusli Wadia acting in concert with Cyrus Mistry has been acting against the interests of Tata Chemicals and its principal shareholder by galvanising independent directors and mobilising opinion, forcing disruptions, and issuing a statement that in our view is contrary to the interests of the company."

It added, "By such an act, it has put the company in jeopardy with respect to its further expansion plans, capital raising by virtue of equity or debt, queries from rating agencies and impact on the overall morale of the workers, employees and management who have joined Tata Chemicals, a Tata Company."

Talking on Wadia, Tata Sons' said, "Moreover he has been a director since several decades and considering all these factors, his continuance on the Board is untenable. The principal shareholders have lost confidence in the independence, suitability or bonafides of Wadia and seek his removal."

Tata Consultancy Service too has said that Mistry's removal is in the best interest of the company and it will consider the matter in the EGM meeting held on December 13, 2016. 

Apart from the Mistry-Wadia ouster, Tata Chemical under its EGM meeting will also seek approval on naming S. Padmanabhan as director.

Shares of Tata Chemicals surged over Rs 10 or 2.27% on BSE, trading at Rs 475.60 per share.