New Delhi: The battle between Byju’s and investors intensified after the edtech major said on Thursday that the company’s co-founder and CEO Byju Raveendran and Board members will not attend the extraordinary general meeting (EGM) called by select investors on Friday.
Earlier in the day, sources said that key investors in Byju’s will go ahead with the EGM for a vote to remove Raveendran as the company’s CEO.
“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 edtech major said in a statement.
“This means the EGM, if it is still summoned, will not have the required quorum and cannot proceed to discuss or vote on the agenda. As custodians of Byju’s, it is the responsibility of the Founders to respect the established procedures of law and protect the company’s integrity,” the company added.
According to sources, the majority of investors are set to vote in favour of Raveendran’s removal from the company which is facing regulatory hurdles amid a cash crunch.
Sources at the end of investors said that EGM is valid and fully in accordance with applicable law.
On Wednesday, the Karnataka High Court ordered that any resolutions, proposed to be passed in the meeting called by select Byju’s investors to appoint a new board and oust the CEO, will not hold ground until the final hearing and disposition of the petition on March 13, filed by Think & Learn Private Ltd, the parent company of Byju’s.
The edtech major argued that certain investors, including General Atlantic, Chan Zuckerberg Initiative, MIH EdTech Investments, Own Ventures, Peak XV Partners (formerly Sequoia Capital India & SEA), SCI Investments, SCHF PV Mauritius, Sands Capital Global Innovation Fund, Sofina, and T. Rowe Price Associates, had violated the Articles of Association (AoA), the Shareholders’ Agreement (SHA), and the Companies Act, 2013 by calling for an EGM on February 23.
Meanwhile, the Enforcement Directorate (ED) has asked the Bureau of Immigration (BOI) to issue a look-out circular (LOC) against Raveendran, according to sources. The move came as the agency’s Bengaluru office is currently investigating alleged Foreign Exchange Management Act (FEMA) violations against the company and its founder. A LOC ‘on intimation’ was also issued against Raveendran more than a year and a half ago.
–IANS
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