"To protect AIADMK, everybody should join hands with OPS (Panneerselvam)," Madusudanan said, adding that he did not want the party to get into the hands of a single family.
Madusudanan had been removed from all posts besides the primary membership for going against the party principles and bringing disrepute to it, she said in a statement in Chennai.
Panneerselvam said Amma's Poes Garden residence, where Sasikala now stays, should be declared a memorial.
Panneerselvam's remark came a day after the two factions were squabbling and blaming each other for the delay in the talks getting off the ground.
E Madusudanan, who was earlier removed as presidium chairman by Sasikala, said she had 'violated' her promise to the late Jayalalithaa that she will not enter politic.
Sasikala, clad in a light green saree with a pink border, greeted supporters with folded hands. She rode to the party office in the car used by Jayalalithaa.
A tweet by O Panneerselvam, leader of the Puratchi Thalaivi faction of All India Anna Dravida Munnetra Kazhagam, on a possible alliance with the Bharatiya Janata Party after the declaration of civic polls kicked up a storm on Saturday.
Party co-coordinator Palaniswami announced constitution of a 11-member steering committee which includes ministers Dindigul C Sreenivasan, P Thangamani, and S P Velumani.
A Ganesh Nadar captures the mood and scenes from outside the hall in Vaanagaram where Sasikala was appointed as the new party chief.
All India Anna Dravida Munnetra Kazhagam's Sasikala faction on Thursday said the presence of two leaves symbol, frozen by the Election Commission ahead of the April 12 RK Nagar assembly byelection, on its website was 'unnoticed' and would be removed.
After a high-level party meet in Chennai, Vaiko said his party has unanimously decided to support the DMK in the by-election.
A section of AIADMK MLAs owing allegiance to party General Secretary V K Sasikala on Friday dismissed media reports and allegations from the Panneerselvam camp that they were being "detained" at a resort near Chennai, and asserted that they were "free".
Party treasurer and Chief Minister O Panneerselvam said, "In tune with party rules, honourable Chinnamma is appointed AIADMK general secretary and a resolution to this effect has been adopted unanimously by the general council."
The party HQ, addressed as 'Thalamai Kazhagam' in Tamil, now has only banners of late chief minister J Jayalalithaa.
In its first public protest, the O Panneerselvam-led All India Anna Dravida Munnetra Kazhagam faction on Wednesday observed a day-long fast across Tamil Nadu demanding a probe into the death of J Jayalalithaa.
Tamil Nadu Governor K Rosaiah on Friday accepted the resignation of Chief Minister O Panneerselvam and invited All India Anna Dravida Munnetra Kazhagam chief Jayalalithaa to form the new government.
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