 "Illustration: Ajay Mohanty")
Nusli Wadia might be picking holes in Ratan Tata’s strategies and rubbishing various business calls, including the Corus acquisition by Tata Steel to the Nano launch by Tata Motors, now. But four years ago, when Tata stepped down to make way for Cyrus Mistry as the chairman of Tata Sons, it was Wadia who lauded his role and proposed that Tata stays on the boards of the operating companies as Chairman Emeritus and offer counsel, whenever needed.
As the senior most board member of Tata Motors, Tata Steel and Tata Chemicals, Wadia had praised the ‘visionary leadership’, ‘bold vision’ and ‘global vision’ of the outgoing chairman, company records reviewed by Business Standard showed. He had also been part of the recommendations the boards passed, naming him permanent a invitee and sharing all board communications with him, including notices, agenda and minutes of board meetings.
The minutes of a board meeting, dated February 14, 2013 of Tata Motors, read: “Mr Wadia proposed that taking into consideration the visionary leadership, strategic direction and stewardship so liberally given to the company by Mr Tata and in recognition of his immense contribution and great service to the company, the board would be honoured if Mr Tata would accept the conferring on him the title Chairman Emeritus,” adding, “the board would also greatly appreciate if Mr Tata would continue to provide his counsel and advice to the board and the company, whenever needed.”
In case of Tata Steel, the minutes of the meeting dated December 14, 2012 said, “With the permission of the chair, Mr Nusli N Wadia, the senior most board member after Mr Tata, … spoke about Mr Tata’s long relationship with the company of nearly five decades.” Referring to Tata’s tenure on board since 1977 as a non-executive director and as chairman since 1993, Wadia said, “It was through Mr Tata’s bold vision and strategic leadership, the company was transformed from a domestic steel company of less than 5 mtpa (million tonnes per annum) capacity to a multi-national entity with aggregate capacity of 28 mtpa.” He referred to Tata’s acquisitions of Natsteel Asia in Singapore, Millenium Steel on Thailand and Corus Group Plc in UK as the “key highlights”.
The Tata Steel board minutes also added Wadia, who has now changed his views and dragged his ‘friend-turned-foe’ to court, proposed the “board would be honoured if Mr Tata would accept the conferring on him of the title of Chairman Emeritus”, giving a similarly worded citation as in Tata Motors acknowledging his old friend’s contribution. “The board proposed that Mr Tata, though not a director, should as a special and permanent invitee to the board continue to receive notices, agenda papers and minutes of the board meetings so that he may attend at his choice any meeting which he would feel appropriate. The board also requested that if at a particular meeting they believed it was important to have the participation of Mr Tata, they should have the freedom to request his presence.”
In a similar board minutes, dated February 8, 2013, Mistry’s — the incoming chairman — remarks were also recorded. “Mr Cyrus Mistry also agreed that it would be of great value if Mr Tata is available to the company as and when requested.”
Wadia, who has a long association with these companies, told the Tata Chemicals board that, “It was Mr Tata who, through his global vision, bold and strategic leadership and commitment to the company, transformed Tata Chemicals from being a domestic soda ash company to a well-diversified company with a global footprint.”
Wadia, who has served 35 years on the board of Tata chemicals, 37 years in Tata Steel and 18 years in Tata Motors, faces resolutions to remove him from all the three boards. He has termed these moves illegal and has sued the Tatas for Rs 3,000 crore, alleging defamation.
