A BYJU’S spokesperson said that none of the company’s board members, which include founder Byju Raveendran, his wife Divya Gokulnath, and his brother Riju, will attend the EGM
Sources close to the embattled startup’s investors told Inc42 that the EGM will proceed as planned and the resolutions will be called upon to vote
BYJU’S investors plan to oust Byju from the position of the edtech startup’s CEO and wrest control of the company’s board at the EGM on February 23
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A day ahead of the crucial extraordinary general meeting (EGM) convened by the investors of BYJU’S on February 23, the edtech giant said its founder and CEO Byju Raveendran and his family will not attend the “invalid” meeting.
In a statement, a BYJU’S spokesperson said that none of the company’s board members will attend the meeting. It is pertinent to note that the edtech major’s board only comprises members of the Raveendran family – Raveendran, his wife Divya Gokulnath, and his brother Riju Ravindran.
The spokesperson said that the EGM is invalid and violates articles of association and shareholders’ agreement under the Companies Act, 2013.
“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,” said the edtech major.
Meanwhile, sources close to the embattled startup’s investors told Inc42 that the EGM will proceed as planned and the resolutions will be called upon to vote.
BYJU’S investors plan to oust Raveendran from the position of the edtech’s CEO and wrest control of the company’s board.
However, BYJU’S, in its statement, said that the EGM, if summoned, will not have the required quorum and cannot vote on the meeting’s agenda. “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,” it said.
Earlier, Inc42 reported that the company’s investors are also mulling legal options if the resolutions fail to fructify at the EGM.
This comes on the same day as reports surfaced that the Directorate of Enforcement (ED) had urged the Bureau of Immigration (BOI) to issue a look out circular (LOC) against the edtech major’s cofounder and CEO.
Meanwhile, the financial reporting review board (FRRB) of the Institute of Chartered Accountants of India (ICAI) is expected to soon submit its report on the auditing process of embattled edtech giant.
The company has been embroiled in multiple controversies over the past few years, including mass layoffs, regulatory scrutiny, a looming debt crisis, and a cash crunch. On top of that, it has invited the ire of investors for delays in filing financial statements and its decision to undertake a $200 Mn rights issue at a valuation cut of about 99%.
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