Crisis-hit edtech star Byju’s has contested Friday’s decision of its shareholders to oust its founder as the chief executive officer.
The company said the resolutions taken at the shareholders’ meeting were “invalid” since its founders were not present. “The resolutions passed during the recently concluded extraordinary general meeting – attended by a small cohort of select shareholders – are invalid and ineffective,” Byju’s said.
The company said at least one founder-director must attend the meeting to form a valid quorum, but it was not met since neither Byju Raveendran, his wife or his brother were present. This renders the resolutions taken at the meeting as “null and void,” said a statement.
Prosus NV and Peak XV Partners were among the shareholders who voted yesterday to dethrone Byju Raveendran, indicating displeasure with the entrepreneur as his company fights to remain in business.
The outcome, however, will not be applicable until March 13 when the Karnataka High Court hears Mr Raveendran’s challenge to the validity of the meeting. The shareholders too are expected to present their decisions before the court to justify their position.
Several staff tried to crash the meeting on a Zoom call involving the investors and the management, reported Bloomberg citing people with knowledge about the matter. There were loud noises and whistles by unknown participants during the meeting, it said.
Byju’s was once a high-flying online tutoring startup valued at $22 billion in 2022. Its valuation has nosedived 90% since and the company has cut thousands of jobs to survive.
In a series of setbacks, the company recently saw its auditor Deloitte resigning and a lawsuit in the US disputing loan payment terms. It also faces an Enforcement Directorate probe in connection with alleged Foreign Exchange Management Act (FEMA) violations.