Byju's saga: Raveendran, Board members not to attend investors' meet on Friday

New Delhi, Feb 22 (IANS) – The battle between Byju’s and investors intensifies as the edtech major announced that CEO Byju Raveendran and board members will not attend the extraordinary general meeting (EGM) called by select investors on Friday. The investors are pushing for Raveendran’s removal as CEO amid regulatory hurdles and a cash crunch.

Byju’s stated, “This EGM is procedurally invalid, contractually in contravention of our AOA and SHA, legally on the wrong side of the Companies Act, 2013. Byju Raveendran or any other Board member will not attend this invalid EGM.”

The company emphasized, “As custodians of Byju’s, it is the responsibility of the Founders to respect the established procedures of law and protect the company’s integrity.”

Sources revealed that the majority of investors are poised to vote in favor of Raveendran’s removal from the company despite the legal battle and regulatory issues.

However, the Karnataka High Court has ordered that any resolutions proposed in the meeting called by select Byju’s investors to appoint a new board and oust the CEO will not hold ground until the final hearing and disposition of the petition on March 13, filed by Think & Learn Private Ltd, the parent company of Byju’s.

Byju’s argued that certain investors had violated the Articles of Association (AoA), the Shareholders’ Agreement (SHA), and the Companies Act, 2013 by calling for an EGM on February 23.

In the midst of this battle, the Enforcement Directorate (ED) has requested the Bureau of Immigration (BOI) to issue a look-out circular (LOC) against Raveendran as the agency investigates alleged Foreign Exchange Management Act (FEMA) violations against the company and its founder.

The saga between Byju’s and its investors continues as the company faces regulatory hurdles and a battle for control. It remains to be seen how this conflict will play out in the coming days.

–IANS
na/vd