Latest News Updates : Declaring the meeting “procedurally invalid” and contractually against the company’s article of association and shareholder’s agreement, neither Raveendran Byju nor any other board member will be present.
All eyes are on the emergency general meeting that certain Byju’s investors have convened today in an attempt to remove founder CEO Byju Raveendran and his family due to alleged shortcomings and poor management.
Terming the meeting “procedurally invalid” and contractually in violation of the company’s article of association and shareholder’s agreement, Raveendran announced that neither he nor any other board member will be attending.
“I firmly declare that neither I nor any other member of the Board will be present at this erroneous EGM. In a letter to shareholders, he stated that “a valid EGM requires the attendance of at least one Founder in accordance with the AOA and the SHA.”
The meeting was organized by investors who declared it to be legitimate and completely compliant with the relevant laws. They stated that the EGM will proceed according to schedule and that it would be inaccurate to claim that if founders are not present, there won’t be a quorum.
A stay that forbids the implementation of any resolutions approved during the EGM until the next hearing has been granted by the high court to Byju’s.
However, the court declined to halt the urgent shareholder meeting. This concerns the $950 million acquisition of the company in 2021, of which about 70% was paid in cash and the remainder will be deducted from Think & Learn equity.
The gap between the business and some of its most significant stakeholders is reflected in the accusations made against Byju’s management for allegedly hiding material facts from investors.
They are accused of misrepresenting short-term capital sufficiency by misleadingly disclosing available capital, major disparities between guidance and actual results, and neglecting to disclose trading financials.
Information about investigations conducted by the MCA, the Directorate of Enforcement (ED), and the Serious Fraud Investigation Office (SFIO) has also been requested by the investors.
Additionally, they claim that the management consistently violated the terms of the articles of organization and shareholder agreement, as well as failing to deliver crucial financial information, debt negotiations, cap tables, and details of M&A transactions.
The shareholders have suggested that the CEOs and CFOs of each entity be evaluated, interim succession plans be established, and possibly a temporary CEO from outside the company will be appointed for each entity.