Over 60% of edutech Byju’s shareholders voted on Friday to remove founder CEO Byju Raveendran and his family due to alleged “mismanagement and failures” at what was once India’s most popular tech startup. However, the company resisted, referring to the voting that was conducted without the founders’ presence as “invalid.”
In a statement, Prosus, one of the six investors who had called the extraordinary general meeting (EGM), said that “all resolutions put forward for vote were unanimously passed by shareholders.”
“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 founder of T&L; and a change of leadership of the company.”
The EGM was avoided by Raveendran and his family, who deemed it to be “procedurally invalid.”
The results of the EGM vote, however, won’t matter until March 13, when the Karnataka High Court will take up Raveendran’s appeal contesting the decision made by some investors to call the EGM.
The EGM was called by shareholders who collectively own more than 32% of Think & Learn (T&L), the company that runs Byju’s. The High Court refused to postpone the meeting on Wednesday, but any decisions made will not take effect until the next hearing date.
Raveendran and family own 26.3 per cent in the company.
Byju’s in a statement, issued even before the EGM results were declared, said it “firmly declares that the resolutions passed during the recently concluded EGM — attended by a small cohort of select shareholders – are invalid and ineffective. The passing of the unenforceable resolutions challenges the rule of law at worst.”
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