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Byju Raveendran says investor move to oust him is illegal: ‘No required quorum’
Byju's Crisis: Byju Raveendran said, “It is with firm resolve that I inform you that neither I nor any other Board member will attend this invalid EGM."
Byju's founder and CEO Byju Raveendran told shareholders that he and his family won't take part in the extraordinary general meeting (EGM). The meeting was called for today (February 23) with the aim to oust the leadership. In a letter to shareholders, he wrote, “It is with firm resolve that I inform you that neither I nor any other Board member will attend this invalid EGM. Under the AOA and the SHA, the attendance of at least one of the Founders is necessary to form the quorum for a valid EGM.”
Read more: More trouble for Byju's: ED seeks look out circular against Byju Raveendran
"This means that the EGM, if it is still summoned, will not have the required quorum and cannot proceed to discuss or vote on the agenda. In particular, if there is no quorum within half an hour of the scheduled time (i.e. by 930am IST), then under Clause 39(a) of the AOA and Clause 4.8(a) of the SHA, the EGM cannot commence," he added.
Read more: Byju's shareholder EGM today; investors to vote on ouster of CEO Raveendran, family
This comes after Byju’s filed a petition in the Karnataka High Court to restrain shareholders from holding the EGM but the court said that implementation of resolutions passed would be subject to the final hearing on March 13.
ED seeks look out circular against Byju Raveendran
Earlier, the Directorate of Enforcement (ED) asked the Bureau of Immigration (BOI) to issue a look out circular (LOC) against Byju Raveendran. The agency issued show-cause notices in November last year to Byju's parent Think & Learn Pvt Ltd and Byju Raveendran over alleged violations of ₹9,362.35 crore. “The company was also stated to have made significant foreign remittances outside India and investments abroad which were allegedly in contravention of provisions of FEMA, 1999, and caused loss of revenue to the government of India," ED said then.
