Byju's investors vote to remove CEO from board

Company calls resolutions at EGM 'invalid'; shareholders move NCLT

- PEERZADA PEERZADA

Investors of Byju's, during the extraordinary general meeting (EGM) on Friday, voted and passed resolutions including the removal of founder Byju Raveendran as chief executive officer (CEO), according to Prosus, which too has put money in the edtech firm.

They passed resolutions to change the board, which includes Byju Raveendran's wife and cofounder, Divya Gokulnath, and his brother Riju Raveendran.

The Raveendran family didn't join the meeting. Byju's said the resolutions were invalid and ineffective. Their passing challenged the rule of law at worst, it added.

Prosus said: "At today's extraordinary general meeting, shareholders unanimously passed all resolutions put forward for vote. These included a request for the resolution of the outstanding governance, financial mismanagement and compliance issues at Byju's; the reconstitution of the Board of Directors, so that it is no longer controlled by the founders of Think & Learn, (Byju's parent); and a change in leadership of the company."

According to investor sources, holders of over 60 per cent of the cap table voted in favour. Byju's founders hold 23-25 per cent of the cap table.

Meanwhile, a group of four investors have filed an oppression and mismanagement suit against the company's management in the National Company Law Tribunal (NCLT), Bengaluru Bench, to declare the founders unfit to run the company. The group has also asked for the appointment of a new board, declaring the rights issue as void.