Tata firms to go ahead with EGMs on Wadia removal

 The Bombay High Court on Friday did not grant interim relief to the minority shareholders of three Tata Group companies who had sought to restrain its promoters from going ahead with voting at the Extraordinary General Meetings next week on a resolution seeking removal of Nusli Wadia as an independent director.

However, Justice S J Kathawala restrained Tata Chemicals, Tata Motors and Tata Steel from filling up the vacancies on the board of directors until further orders.

The Court asked Tata Sons to file a written reply to the suit by January 15 and directed the plaintiffs to submit a rejoinder, if any, by January 25. Next hearing would be on February 6.

Janak Mathuradas, Yogesh Mathuradas, Chanda Mathuradas and Pramila Mathuradas, minority shareholders of the three Tata firms, had prayed to the HC to restrain promoters of the firms from voting at EGMs on a resolution to remove Wadia.

The plaintiffs also challenged a rule in the Companies Act which allows promoters to vote on a resolution seeking removal of independent directors.

Their lawyer Navroze Servai argued that only public shareholders should be allowed to vote on a resolution on removal of independent directors as these directors protect the interests of minority shareholders.