Byju's founder, Raveendran faces rising discontent as investors demand clarity at an extraordinary general meeting scheduled for today
Byju's edtech journey seems to be in murky water, with its founder Byju Raveendran, facing heightened discontent among its stakeholders. An extraordinary general meeting (EGM) of the edtech giant is slated for today, as investors are now demanding clarity over various aspects.
A group of shareholders, led by the global technology investor Prosus, intends to oust Mr. Raveendran and establish a fresh board. This development comes at a time when the Enforcement Directorate (ED) has issued a lookout notice against the founder regarding an alleged breach of the Foreign Exchange Management Act (FEMA).
However, according to sources, it is probable that the founder of the edtech giant will not attend the EGM.
"This EGM is procedurally invalid, contractually in contravention of our AOA (Articles of Association) and SHA (Shareholders' Agreement), legally on the wrong side of the Companies Act, 2013. Byju Raveendran or any other Board member will not attend this invalid EGM," a Byju’s spokesperson said.
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. The spokesperson further said, " 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.”
In November of last year, the ED had issued a show-cause notice to Byju's parent company, Think & Learn Pvt Ltd, and Raveendran himself, citing purported violations of the Foreign Exchange Management Act (FEMA) totaling Rs 9,362.35 crore.