[Live Updates] BYJU’S At War: Everything You Need To Know About Byju Raveendran’s Battle With Investors

The management of beleaguered edtech giant BYJU’S is at war with its investors. At a time when the cash-strapped company is looking to raise fresh capital to continue its operations, some of the disgruntled investors of BYJU’S have called for an extraordinary general meeting (EGM) on February 23 (Friday) to reconstitute its board and change its leadership.

Ahead of the EGM, the Byju Raveendran-led company dragged its investors to the Karnataka High Court, arguing that the shareholders didn’t follow the procedures under the Companies Act, 2013. While the Raveendran family did get a temporary relief from the court, the troubles are far from over.

Sources informed Inc42 that the EGM, taking place today, is expected to see most investors voting in favor of the removal of cofounder and CEO Raveendran from the company.

With new developments taking place at a rapid pace in this battle for the control of the edtech startup, we are running this live blog to keep you updated with the troubles of BYJU’S and the latest developments pertaining to the upcoming EGM.

February 24, 2024, 18:20 IST: A day after its investors held the EGM, founder and CEO Byju Raveendran told employees that it is business as usual at BYJU’S. In an email sent to the employees, he said he continues to be the CEO of BYJU’S and its management and board remain unchanged. Read more…

February 23, 2024, 21:00 IST: Seven resolutions were passed unanimously at the EGM called by the investors of BYJU’S, including one calling for the appointment of a forensic expert to investigate various actions including with respect to acquisitions, alleged breaches, regulatory affairs, tax filings. Read more…

February 23, 2024, 18:30 IST: Prosus, one of BYJU’S shareholders who called the EGM, claims that all the resolutions put to vote were passed unanimously during the meeting, including those calling for reconstitution of the edtech startup’s board and change in its leadership. Read more…

February 23, 2024, 17:35 IST: BYJU’S says that the resolutions passed during the EGM are invalid and ineffective. The edtech giant claimed that the meeting was attended by “a small cohort of select shareholders” and the passing of the “unenforceable resolutions” challenges “the rule of law at worst”.

February 23, 2024, 14:00 IST: A group of four investors of BYJU’S have moved the Bengaluru bench of the National Company Law Tribunal and filed a petition for oppression and mismanagement of the company. Read more…

February 23, 2024, 12:00 IST: Despite the commotion in the early stages, the BYJU’S EGM is said to be on schedule and voting is about to end on key matters.

• While the EGM is expected to be wrapped up by 12:30 PM IST, the final tally of votes on critical issues will only become clear a few hours after that
• Sources indicated that votes will go to an independent scrutineer, who is expected to share the results later this afternoon.

February 23, 2024, 11:00 IST: The EGM, was marred by a series of setbacks, including alleged phishing attacks through email notifications which claimed the meeting was cancelled, as well as employee protests. Here’s how things unfolded since this morning:

• Sources present at the EGM told Inc42 that the day started with a phishing attack to attempt to disrupt the meeting. Attendees allegedly received a random notification from an unidentified source that the meeting is cancelled. However, the EGM kicked as per schedule at 9 AM
• We were told that several BYJU’S representatives tried to join in without process and ambush the meeting. When asked to introduce themselves, there was no response. It took over an hour to complete the roll call and verify attendees as hundreds of individuals had joined the call, including some who joined the meeting impersonating other investors. Sources claim there was an attempt to sabotage the meeting with loud whistles and a noisy environment
• The EGM, when it finally started, was chaired by Prosus’ global CFO for edtech investments Gunjan Shukla. From about 170 joinees, the total number was reduced to 37 after verification of pre-authoried names. All investors who had confirmed attendance ahead were allowed.
• MSKA & Associates, the auditor for BYJU’S, also joined the call, we have been informed by sources present at the meeting

February 23, 2024, 10:23 IST: The EGM is on track and the voting will begin after roll call and reading of resolutions. With the management and board absent, the EGM is anticipated to finish sooner. All the representative members of six investors who want Raveendran’s removal present.

February 23, 2024, 01:00 IST: As the fate of BYJU’S, its founders Byju Raveendran and Divya Gokulnath hangs in the balance, here are the seven key questions whose answers the investors are seeking from the management at the EGM. Read more…

February 22, 2024, 20:45 IST: A day ahead of the crucial EGM, BYJU’S said its founder and CEO Byju Raveendran and his family members will not attend the “invalid” meeting. Read more…

February 22, 2024, 13:00 IST: The Financial Reporting Review Board (FRRB) of the ICAI will soon submit its report on the auditing process of embattled edtech giant BYJU’S. Read more…

February 22, 2024, 10:30 IST: The Directorate of Enforcement (ED) has requested the Bureau of Immigration (BOI) to issue a look out circular (LOC) against edtech major BYJU’S founder and CEO Byju Raveendran. Read more…

February 21, 2024, 21:30 IST: In an interim order, the Karnataka High Court said that any decisions taken by shareholders at BYJU’S upcoming EGM will not come into effect at least till March 13. Read more… 

February 21, 2024, 18:00 IST: Adding to the long list of insolvency petitions against BYJU’S, the National Company Law Tribunal admitted the insolvency plea filed by the edtech major’s creditors. Read more…

February 21, 2024, 10:00 IST: Byju Raveendran told its shareholders in a letter that the company’s $200 Mn rights issue has been fully subscribed and also offered to restructure the board and add two non-executive directors. Read more…

February 21, 2024, 07:00 IST: BYJU’S investors, who have called for the EGM, contemplate legal recourse if their efforts to oust CEO and founder Raveendran and his family from the company’s board are unsuccessful. Read more…

February 2, 2024: BYJU’S claims that its shareholders’ agreement does not give the right to investors to vote on change of the CEO or the management of the startup. Read more…

February 1, 2024: Major investors of BYJU’S call for an EGM to reconstitute its board and oust its leadership team. The edtech startup’s board comprises Byju Raveendran and his family members Divya Gokulnath and Riju Raveendran. Read more…

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