Four investors of edtech firm Byju's have filed a mismanagement suit in the NCLT, seeking the removal of CEO and founder Byju Raveendran from the board of directors, reported PTI.
This comes when Byju's investors are in the middle of an emergency meeting, ready to vote on the ouster of CEO Raveendran and his family from the board of directors of the company. The Raveendran family, however, has said that this EGM by shareholders is “illegal”.
Four shareholders in the edtech company have filed a mismanagement and oppression suit against Raveendran in the National Company Law Tribunal on Friday in a bid to oust him from the firm, a day after the Karnataka High Court ruled in favour of the CEO.
Further, the suit filed by the shareholders also seeks a forensic audit of the company, appointment of a new board and the rights issue void.
Investors, who are seeking the ouster of Raveendran and family from the Byju's board at an extraordinary general meeting of shareholders for alleged "mismanagement and failures" at what was once India's hottest tech startup, have also sought a forensic audit of the company in the plea filed before the National Company Law Tribunal (NCLT) on Thursday evening, according to a court filing.
The court filings also show that the investors moving against CEO Raveendran are seeking that the declaration of the just-concluded $200 million rights issue be deemed void, and that the company should not take any actions that will prejudice the rights of the investors.
{{/usCountry}}The court filings also show that the investors moving against CEO Raveendran are seeking that the declaration of the just-concluded $200 million rights issue be deemed void, and that the company should not take any actions that will prejudice the rights of the investors.
{{/usCountry}}The petition has been signed by four investors -- Prosus, GA, Sofina, and Peak XV -- along with support from other shareholders, including Tiger and Owl Ventures.
Karnataka High Court ruling on Byju's crisis
As the investors moved a resolution to vote out the founders of Byju's from the board of directors, the Karnataka High Court earlier this week said that till the time the bench has not delivered its final verdict, no resolution taken in the EGM can be held valid.
Meanwhile, the investors decided to go ahead with the extraordinary general meeting (EGM) on Friday, while Byju Raveendran and his wife Divya Gokulnath chose not to attend the meeting.
(With inputs from PTI)