Byju’s founder Byju Raveendran, along with his wife and co-founder Divya Gokulnath, and brother Riju Ravindran, have announced that they will not be attending the extraordinary general meeting (EGM) called by a group of investors seeking Raveendran’s removal as CEO and changes to the board. As the only board members at Think & Learn, the parent company of Byju’s, the trio stated that the company deemed the EGM ‘invalid’.
In a statement, Byju’s cited procedural invalidity, contractual violation of their Article of Association (AOA) and Shareholding Agreement (SHA), and legal non-compliance with the Companies Act, 2013, as reasons for considering the EGM invalid. They asserted that if the EGM proceeds, it will lack the necessary quorum to discuss or vote on the agenda.
Sources close to the investor group confirmed that they intend to proceed with the EGM on Friday morning, despite Byju’s objections.
The Karnataka High Court issued an interim order on Wednesday, ruling that any resolutions passed at the proposed EGM would be subject to its final decision on a petition filed by Byju’s against the investors. The court is set to hear the matter further on March 13.
Byju’s filed a petition challenging the EGM, arguing that the investors violated the shareholders’ agreement by calling for it. The petition targets investors such as Prosus, General Atlantic, Chan Zuckerberg Initiative, Owl Ventures, and others.
Facing financial strain, Byju’s informed shareholders that the proposed $200 million rights issue has been fully subscribed. This development values the company at $220 million after the investment, significantly lower than its previous valuation of $22 billion.
