Byju's Update: Byju Raveendran And Family To Skip EGM
Edtech major Byju's CEO and Managing Director Byju Raveendran and his family will not attend the extraordinary general meeting (EGM) called by the investors today. The edtech giant said that its founder and his family will not attend the “invalid” meeting.
Byju's board only comprises members of the Raveendran family – Raveendran, his wife Divya Gokulnath and his brother Riju Ravindran. The company said in a statement 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,” the statement read.
Byju's investors want to remove Raveendran as the edtech’s CEO and take control of the company’s board. The company said that the EGM may not have enough people to vote on the meeting’s agenda.
The investors may take legal action if the resolutions do not succeed at the EGM. At the same time, Enforcement Directorate (ED) has asked the Bureau of Immigration (BOI) to issue a look out circular (LOC) against the edtech major’s Co-founder and CEO.
Moreover, the Institute of Chartered Accountants of India's financial reporting review board is expected to submit its report on the auditing process of the company soon. Byju's has faced several controversies in recent times, including mass layoffs, regulatory scrutiny, debt problems, delays in filing financial statements and conflict with term B lenders. The company has also upset investors by deciding to undertake a USD 200 million rights issue at a valuation cut of about 99 per cent.
