Edtech giant Byju’s is pushing back against the recent decision by its shareholders to oust its founder as the Chief Executive Officer (CEO). Byju’s contends that the resolutions adopted during the shareholders’ meeting on Friday are deemed “invalid” as the company’s founders were conspicuously absent.
In a statement, Byju’s asserted that a valid quorum requires the presence of at least one founder-director, a condition unmet during the extraordinary general meeting. Byju Raveendran, along with his wife and brother, was notably absent, rendering the resolutions taken at the meeting “null and void,” as per the company’s official stance.
Prosus NV and Peak XV Partners, among other shareholders, voted in favor of removing Byju Raveendran as CEO, signaling dissatisfaction with his leadership amid the company’s ongoing challenges. However, the repercussions of this decision will not take effect until March 13, pending a hearing in the Karnataka High Court, where Raveendran is challenging the validity of the meeting. Shareholders are also expected to present their justifications before the court.
The shareholders’ meeting, conducted virtually, witnessed disruptions as unidentified participants created disturbances with loud noises and whistles, as reported by sources familiar with the matter. The meeting was held via Zoom and involved investors, management, and attempted participation from several staff members.
Once valued at an impressive $22 billion in 2022, Byju’s has faced a precipitous decline in valuation by 90%, prompting the company to implement significant job cuts to navigate through its financial challenges. Recent setbacks include the resignation of its auditor Deloitte, a lawsuit in the US disputing loan payment terms, and an Enforcement Directorate probe regarding alleged Foreign Exchange Management Act (FEMA) violations. The company’s resilience and ability to weather these challenges remain a subject of intense scrutiny as it strives to regain stability.