4 Tata firms to vote on Mistry’s removal as director this week

TIL Desk/Business/Mumbai-In what could prove to be a crucial week in the ongoing boardroom war between Tata Sons and its ousted Chairman Cyrus Mistry, four listed firms of the group will vote on resolutions to remove him as director from their boards. All eyes will be on the outcome of voting by shareholders of Indian Hotels Co Ltd (IHCL), Tata Steel, Tata Motors and Tata Chemicals at their EGMs to be held on December 20-23.

Besides deciding the fate of Mistry, shareholders of three companies — Tata Steel, Tata Motors and Tata Chemicals will also vote on similar resolutions moved by Tata Sons to remove independent director Nusli Wadia from their boards. Shareholders of IHCL will vote on removing Mistry as director. Tata Sons holds 28.01 per cent stake in the company.

According to the information available on BSE, as on September 2016, promoter and promoter group together held 38.65 per cent stake in IHCL. One of the key non-promoter shareholders, LIC, which had abstained in a similar voting in TCS, holds 8.76 per cent. Mistry on his own holds 1,28,625 shares in the company, as per IHCL’s 2015-16 Annual Report. In Tata Steel, Tata Sons holds 29.75 per cent while the total of promoter and promoter group holding is 31.35 per cent while non-promoter shareholder LIC holds 13.62 per cent.