Wadia gave two days’ time to Tata Sons to withdraw its special notice, failing which he would initiate civil and criminal proceedings against the Tata Sons board, said the notice.
This is the first legal challenge to the notice
sent by the Tatas to remove Wadia and former chairman of Tata Sons Cyrus Mistry
from the boards of Tata companies as a director.
“Tatas have embarked on a personal vendetta against me,” said Wadia’s notice
to Tata Sons.
In the board meetings held earlier this month, Wadia had come out in full support of Mistry. Wadia, who is a senior independent director on the three companies and the chairman of the Nomination and Remuneration Committee of all the three companies, had given a good report on Mistry and was reportedly unhappy with the way Mistry was removed on October 24 by the Tata Sons board.
The friendship between Wadia and Ratan Tata developed cracks after the latter went on an overseas acquisition drive of Tata Steel
that resulted in a huge loss to the company. Wadia had also shot down a proposal by Tata Chemicals to buy an overseas company and was against the Nano project that resulted in Tata Motors
losing over Rs 25,000 crore in development costs.
Tata Sons’ notice
on November 11 by Chief Operating Officer and Company Secretary F N Subedar said Wadia was acting in concert with Mistry and was against the interests of the Tata group.
“Despite purportedly being an independent director on the boards of certain Tata group of companies including in Tata Steel, Wadia has been conducting himself as an interested party. Wadia has been conducting himself in a manner that is designed to cause harm to the Tata group,” said the Tata Steel notice.
“He has not been conducting himself independently and instead has been galvanising independent directors and acting prejudicially. Wadia’s action may put the company in grave jeopardy and impact the overall morale of the workers, employees and management who have joined a Tata company. 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,” the notice