The main investors of struggling education technology company Byju’s decided to remove founder Byju Raveendran from his position as CEO on Friday, following a lengthy Zoom call.
During the Extraordinary General Meeting (EGM), organized by major investors, there were interruptions caused by some employees of the company, as stated by two individuals present, according to Bloomberg.
Throughout the meeting, there were instances where unidentified participants tried to disrupt the proceedings by making loud noises with whistles and other methods.
Investors Voted to Remove Byju’s CEO
During the Extraordinary General Meeting (EGM), a substantial majority of investors, comprising over 60%, including prominent entities such as Prosus NV and Peak XV Partners, voiced their support for the removal of Raveendran from his role within the edtech company. The grounds for this decisive action were primarily attributed to perceived mismanagement and various other challenges plaguing the organization.
Following the EGM, Prosus issued a formal statement affirming that shareholders had indeed ratified all proposed resolutions. This turn of events marks a significant setback for Raveendran, who was once heralded as a key figure within India’s burgeoning edtech sector, now facing a notable loss of confidence among investors.
Furthermore, the investors’ discontent extended beyond Raveendran himself, as they also advocated for the removal of his family members from their leadership positions within the company, signaling a broader dissatisfaction with the current management structure.
Byju’s Disputes Investor Resolutions in Recent Meeting
Byju’s disagreed with the decisions made by investors at the special meeting, especially the one to remove Raveendran from the company’s board.
According to Byju’s statement mentioned in a Bloomberg report, the decisions made at the recent special meeting, which only had a few specific shareholders present, are considered null and void.
Byju Raveendran and his family did not attend the meeting, considering it to be invalid.
What’s Next?
Despite a significant show of support from major investors, the tenure of Byju Raveendran as CEO hangs in the balance amidst ongoing legal maneuvers. Byju Raveendran has lodged a petition challenging the investors’ decision, resulting in a delay of any decisive action until March 13.
In a recent ruling, the Karnataka High Court has temporarily suspended the implementation of resolutions made during the Extraordinary General Meeting (EGM) until the next court hearing, though the proceedings themselves continue unabated.
Anticipating the implications of the EGM, Byju’s has issued a formal statement, contesting the validity of the resolutions passed, citing the limited involvement of shareholders in the decision-making process.
The company underscores its unwavering commitment to upholding the principles of the rule of law, awaiting the court’s final judgment on March 13, which will ultimately dictate the fate of Byju Raveendran and his family within the company.
Investors Voted to Remove Byju’s CEO FAQs
Q.1. What prompted the removal of Raveendran as CEO of Byju’s?
Ans. Over 60% of major investors, including Prosus NV and Peak XV Partners, expressed their support for Raveendran’s removal during an Extraordinary General Meeting (EGM). This decision was primarily driven by concerns regarding mismanagement and other challenges faced by the company.
Q.2. How did the EGM unfold, and what disruptions occurred during the meeting?
Ans. The EGM, conducted via Zoom, saw interruptions from some company employees, according to reports from Bloomberg. Unidentified participants attempted to disrupt proceedings by creating loud noises with whistles and other methods.
Q.3. What actions has Byju’s taken in response to the investor resolutions?
Ans. Byju’s has contested the decisions made at the special meeting, particularly the removal of Raveendran from the company’s board. The company considers the resolutions passed during the meeting, which had limited shareholder representation, to be null and void.
Q.4. What is the current legal status of the situation involving Byju’s and its investors?
Ans. Raveendran has filed a petition challenging the investors’ decision, leading to a delay in any definitive action until March 13. The Karnataka High Court has temporarily suspended the implementation of resolutions passed during the EGM until the next court hearing.
Q.5. What is the anticipated outcome of the legal proceedings on March 13?
Ans. The court’s final judgment on March 13 will determine the fate of Byju Raveendran and his family within the company. Byju’s has emphasized its commitment to the rule of law and awaits the court’s decision regarding the validity of the resolutions passed during the EGM.
