Byju's shareholder EGM today; investors to vote on ouster of CEO Raveendran, family
Byju's shareholders are set to conduct an emergency meeting today to decide on the ouster of CEO Byju Raveendran and his family as the board of directors.
Edtech company Byju's is all set to conduct their investors' EGM today where the shareholders of the company will take a vote on the ouster of CEO and founder Byju Raveendran, and his family from the board of directors of the company.
However, the resolution to oust Raveendran and his family from the top posts in the company, if passed, will not be set in motion until March 13, when the Karnataka High Court is scheduled to hear the petition filed by Byju's CEO against certain investors.
The Karnataka High Court on Wednesday refused to stay the EGM, called by shareholders collectively holding more than 32 per cent stake in Byju's. Raveendran and family own 26.3 per cent stake in the company.
Investors of the edtech company had called the extraordinary general meeting (EGM) as Byju's continues to grapple with a major financial crisis. The shareholders of the company have accused the Raveendran family of “mismanagement and failures” at top posts in the firm.
The EGM notice by the shareholders seeks the ouster of Byju Raveendran, his wife Divya Gokulnath and brother Riju Raveendran from the board of directors of Byju's. However, the company has repeatedly insisted that the investors do not hold the right to oust any board member.
The edtech firm has called the EGM "procedurally invalid" and contractually in contravention of the company's article of association and shareholder's agreement. It was also reported that the Raveendran family is not planning to attend the EGM.
Is Byju Raveendran attending the EGM?
Byju's parent company Think and Learn Ltd on Thursday issued a statement saying that CEO and co-founder Byju Raveendran and his family will not be attending the shareholders' EGM on Friday, deeming it “invalid.”
“Byju Raveendran or any other Board member will not attend this invalid EGM. This means the EGM, if it is still summoned, will not have the required quorum and cannot proceed to discuss or vote on the agenda,” the company said, reported PTI.
However, investor sources said, “EGM is valid and fully in accordance with applicable law. EGM to continue as per plan. Incorrect to say that EGM won't have a quorum if founders don't attend.”
(With inputs from PTI)