Technology

Key Byju's shareholders vote to oust CEO, company calls resolutions 'invalid' (Lead)

In a recent development, key shareholders in Byju’s, such as Prosus NV and Peak XV Partners, voted to remove Byju Raveendran as CEO at an EGM, citing governance and financial issues. The resolutions also included the reconstitution of the Board of Directors and a change in leadership.

According to sources, over 60% of the cap table holders voted in favor of the resolutions, despite Raveendran holding a significant stake. Byju’s, however, has deemed the resolutions passed during the EGM as “invalid and ineffective,” challenging the rule of law.

The company stated that the resolutions were voted upon without a valid quorum, as stipulated in its Articles of Association. As the founders did not participate in the meeting, Byju’s argued that the resolutions are null and void.

The EGM was called by select investors amidst regulatory hurdles and a cash crunch faced by the edtech major. The Karnataka High Court has ordered that any resolutions from the EGM will not hold ground until the final hearing on March 13.

Meanwhile, Byju’s key investors have approached the NCLT over a $200 million rights issue, citing suppression of investor rights and mismanagement. Prosus, General Atlantic, Sofina, and Peak XV have taken action against the company.

IANS

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