All-important Tata Motors EGM to charter the road ahead

World’s top automobile producer, Tata Motors will be holding its EGM (Extra Ordinary Meeting) on Thursday, December 22, 2016, wherein the proposal to remove independent directors will be put to vote by the company’s shareholders.

Tata Motors had called an EGM to remove Cyrus Mistry and an independent director, Nusli Wadia from the company’s board. However, former chairman, Mistry resigned from the position of chairman from all the Tata Groups listed companies on Monday; and therefore, the EGM would primarily focus vote on Nusli Wadia.

Meanwhile, the Tata Group will go ahead with the EGMs to remove Mistry as director; and at the same time will update the shareholders of the happenings in the company and future course of action related to the respective companies. Tata Motors would also clarify with shareholders regarding allegations levelled against the directors on key decisions related to Nano.

Ahead of the much-anticipated EGM, stock of Tata Motors is trading flat with a positive bias at Rs 469.95 on NSE.

However, Tata Steel in its EGM held on Wednesday voted out to remove Nusli Wadia, as more than 90.8 per cent shareholders voted for his removal from the post of independent director. Whereas, Tata Motors EGM could be tricky given 18.5 per cent is held by FIIs, with Tata Sons holding close to 33 per cent.

Tata Chemicals shareholders will meet on Friday, which will be followed by Tata Power's EGM on Monday.