Industrialist Nusli Wadia on Wednesday said the ability of promoter Tata Sons Ltd to seek removal of independent directors from group company boards could force them to either “toe the line, resign or face removal”. Wadia, who was not present at Tata Steel Ltd’s Wednesday extraordinary general meeting (EGM) called to vote on a resolution seeking his removal, said in a three-page message to the company’s shareholders that if removed in this manner, independent directors such as him will no longer be protected from addressing issues within companies.
Wadia, who has served as an independent director on the steelmaker’s board for 37 years, has filed a Rs3,000-crore defamation suit against Ratan Tata and the board of directors of Tata Sons.
Wadia’s message said the capital employed in Tata Steel Europe could have been invested in three steel plants across India with returns that would make the company the number one steel company in India. The message also highlighted what Wadia believes to be inappropriate actions in violation of the Sebi Insider Trading Regulations by promoter Tata Sons and trustees of Tata Trusts.