SUMMARY
BYJU'S counsel argued that there were serious discrepancies in the affidavits filed by the investors’ representatives and this potentially amounted to “perjury”
The court granted time to BYJU’S to file a rejoinder to the response filed by some of its investors
Think & Learn, the parent of BYJU’S, moved the Karnataka High Court last month seeking a stay on the EGM called by its investors
The Karnataka High Court on Wednesday (March 13) extended the stay on the implementation of the resolutions passed by the investors of BYJU’S at its extraordinary general meeting (EGM) till March 28.
During the hearing, BYJU’S counsel argued that there were serious discrepancies in the affidavits filed by the investors’ representatives and this potentially amounted to “perjury”.
The court directed both sides to make submissions on the issue before the next hearing.
Commenting on the proceedings, BYJU’S, in a statement, said, “In today’s Karnataka High Court hearing, the court has granted time to Think and Learn to file a rejoinder to the response filed by some of the investors. The stay against the purported resolutions at the ‘so called’ EGM that the investors attempted to pass on February 23, 2024 continues and, as such, none of those resolutions can be given effect to. They are unactionable.”
During the EGM last month, the investors of BYJU’S passed a total of seven resolutions, including those calling for a change in the board structure of the embattled edtech giant and removal of founder and CEO Byju Raveendran and his family members – Divya Gokulnath and Riju Raveendran – from their respective management roles.
Think & Learn, the parent of BYJU’S, moved the Karnataka High Court last month seeking a stay on the EGM called by its investors.
BYJU’S has been fighting on multiple fronts over the last year or so and is at war with its investors over the control of the company. While BYJU’S moved the High Court against its investors, investors like Prosus, GA, Sofina, Peak XV filed a NCLT petition for oppression and mismanagement against the edtech major back in February.
The cause of the divide between the investors and the company was the latter’s $200 Mn rights issue, which could eventually dilute their shareholding in the company.
BYJU’s went ahead with its rights issue, which it claimed was oversubscribed. However, the proceeds of the issue are parked in a separate escrow account, as per the NCLT’s order. Earlier this month, the startup cited this as the reason for a delay in processing the salaries of its employees for the month of February.
Meanwhile, its investors moved the Supreme Court earlier this month. They filed separate caveats urging the apex court that they be heard before any order is passed on any potential plea filed against the recent NCLT order.
