Over 60 per cent of shareholders of edutech Byju’s on Friday (February 23) voted to remove founder CEO Byju Raveendran and his family over alleged “mismanagement and failures” at once India’s hottest tech startup, but the company dug in its heels calling the voting done in the absence of the company’s founders as “invalid”. Prosus – one of the six investors who had called the extraordinary general meeting (EGM) – in a statement said “shareholders unanimously passed all resolutions put forward for vote”.
“These included a request for the resolution of the outstanding governance, financial mismanagement and compliance issues at Byju’s; the reconstitution of the board of directors, so that it is no longer controlled by the founder of T&L; and a change of leadership of the company,” it said.
Raveendran and his family stayed away from the EGM, calling it “procedurally invalid.” However, the outcome of the vote at the EGM will not be applicable until March 13, when the Karnataka High Court will next hear Raveendran’s plea challenging the move by certain investors to call the EGM.
High Court’s ruling
The Karnataka High Court on Wednesday had refused to stay the EGM, called by shareholders collectively holding more than 32 per cent stake in Think & Learn (T&L) – the firm that operates Byju’s, but any resolution passed shall not be given effect till the next date of hearing.
Raveendran and family own 26.3 per cent in the company.
Byju’s in a statement, issued even before the EGM results were declared, said it declares that the resolutions passed during the recently concluded EGM — attended by a small cohort of select shareholders – are invalid and ineffective. The passing of the unenforceable resolutions challenges the rule of law at worst.
(With PTI inputs)
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