Tata Motors is scheduled to hold its board meet today at 1:00 pm to approve second quarter results.
The board meeting is also likely to discuss specific items regarding the removal of Cyrus Mistry and Nusli Wadia as directors of Tata Motors.
On Nov 11, Tata Motors said it has received a requisition and a special notice, under Sections 100(2)(a) and 115 of the Companies Act, 2013, from Tata Sons for convening an extraordinary general meeting (EGM) for considering and passing resolutions for the removal of Mistry and Wadia as directors of the company.
Tata Sons is the promoter company of Tata Motors its shareholding represents 26.51% of Tata Motors’ voting capital.
The boardroom battle for control of the Tata group, which surfaced on October 24 after Tata Sons approved a resolution to oust Mistry as group chairman, has seen a series of charges and counter charges traded publicly between Tata Sons and Mistry. Mistry continues to be chairman of some group companies including Tata Motors.
The battle intensified when independent directors of two group companies – Indian Hotels and Tata Chemicals – issued statements of support for Mistry’s leadership, prompting Tata Sons to call for EGMs to oust him as director. Such a move will require shareholder approval and hence the notice for an EGM.
The move to remove Wadia has been taken as Tata Sons has indicated that the veteran industrialist has been leading independent directors to support Mistry.
Tata Motors, which also owns the highly profitable Jaguar Land Rover (JLR) unit, is crucial for the Tata group. The conglomerate gets 90% of its profits from TCS and JLR, which underscores the Tatas’ desire to have control.